Will It Break Previous Records?
In a major market development, Ethereum (ETH) surpassed the $4,000 mark for the first time in more than a decade, surging 40% on the weekly time frame as of the first week of December. This rise is closely tied to the broader rally in cryptocurrency markets, specifically Bitcoin (BTC), which has recently reached new levels all time high.
Ethereum surges 61% as ETF demand grows
according to According to Bloomberg, U.S.-based Ethereum exchange-traded funds (ETFs) have experienced unprecedented demand, recording $428 million in inflows on Thursday alone.
The surge in investment interest reflects growing confidence in Ethereum, especially after Donald Trump won the election on November 5, which sparked bullish sentiment across the market. Cryptolandscape. Since then, Ethereum has outperformed Bitcoin, growing in value by an astounding 61%.
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this reserve Enthusiasm for Ethereum has been further fueled by Paul Atkins’ leadership of the U.S. Securities and Exchange Commission (SEC). Atkins is a supporter of cryptocurrency regulation and an advisory board member of the advocacy group Token Alliance, and is seen as a positive force in the cryptocurrency industry.
Bloomberg said that under his leadership, restrictions that prevent investors from earning returns on collateralized ether through ETFs could be reconsidered, making these investment vehicles more attractive.
Altcoin season is in full swing
Nick Forster, founder of cryptocurrency trading platform Derive.xyz, noted: “Now Bitcoin Having already hit $100,000, it appears investors are looking for the next opportunity. ”
Forster emphasized that Ethereum is still well below its all-time high of $4,878 set in November 2021, prompting many investors to shift their attention and explore the upside potential of altcoins such as ETH.
The growing interest in Ethereum is also evident in the derivatives market, with open interest in CME Group’s Ethereum futures contract reaching record levels, significantly outpacing the growth of Bitcoin futures.
Le Shi, managing director of market-making company Auros, said that U.S. institutions tend to favor regulated investment tools, resulting in more concentrated activities in CME Ether futures and ETH ETFs.
In addition, Glassnode founders Yan Allemann, Jan Happel and Rafael Schutlze-Kraft also tip Amid Bitcoin’s recent volatility, altcoins have been resilient.
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Although Bitcoin fell 13%, altcoins have largely maintained their value, indicating strong market sentiment. this Altcoin Index Hitting 100 is further confirmation that the market is in “altcoin season,” with significant market volatility expected as the weekend approaches.
Looking ahead, the outlook for the market’s second-largest cryptocurrency remains positive, with institutional and retail investment expectations growing as the current market cycle unfolds.
Analysts have Predictive This increase could soon surpass Ethereum’s previous all-time high price, setting the stage for a potentially transformative period in the cryptocurrency market.
As of this writing, ETH is trading at $3,990.
Featured images from DALL-E, charts from TradingView.com
