Author: YASHU GOLA Compiled by: Lawrence, Mars Finance
The rise in Ethereum price is mainly due to the recent ETF application submitted by Bitwise to the US Securities and Exchange Commission, as the ETH price is likely to reach $4,000 in December.
ETH has risen 5.75% in the past 24 hours, reaching around $3,640 on November 28. The performance of the second-largest cryptocurrency has outperformed the rise in the cryptocurrency market, which has risen 2.82% over the same period.
Bitwise files for 10 cryptocurrency index fund ETFs, including Ethereum
The recent rise in Ethereum can be attributed to investors' high optimism about Bitwise Asset Management's recent exchange-traded fund (ETF) application.
It is worth noting that the company has submitted an application to the US Securities and Exchange Commission (SEC) to launch an ETF based on its existing 10 cryptocurrency index fund. The fund was established in November 2017 and is mainly composed of Bitcoin (75.14%) and Ethereum (16.42%), with the remaining assets allocated to cryptocurrencies such as Solana, XRP and ADA.
Most of the cryptocurrencies included in the proposed ETF have seen a surge in the past 24 hours, reflecting the growing speculation and optimism in the market about the potential approval of this investment product.
ETH/USD vs. BTC/USD, XRP/USD, ADA/USD and SOL/USD one-month performance
Ethereum open interest hits an all-time high
Alongside the rise in Ethereum price, its futures market open interest (OI) has also risen significantly. As of November 28, OI has reached over $24 billion, an all-time high, with OI rising by over $4 billion in the past 24 hours.
Since October, Ethereum's weekly funding rate has been positive, standing at around 0.53% as of November 28.
ETH futures OI, funding rate
The record-high OI and the persistent positive funding rate have formed a feedback loop: the bullish sentiment drives increased market participation, which in turn drives price appreciation.
Furthermore, these developments may reflect a broader confidence in the Ethereum ecosystem and its prospects, further supporting its rise.
Ethereum price expected to rise 10% in December
Ethereum's price surge today is further driven by strong technical support and a breakout of a bullish chart pattern.
The cryptocurrency has rebounded from the 50-period exponential moving average (EMA) on the four-hour chart, a key level that has been supporting its recent uptrend.
ETH/USD four-hour price chart
Additionally, Ethereum has entered the breakout stage of its current cup-and-handle formation, a classic bullish continuation pattern. This pattern has formed over several weeks, with the breakout occurring as the price surged above the 3,440 USD neckline level.
Cup-and-handle breakouts typically project a measured move equal to the cup depth, putting Ethereum's upside target near $3,940.
In other words, Ethereum's price is likely to rise over 10% in December.
