This week, with Bitcoin experiencing a significant correction, the largest public chain Ethereum surged on Wednesday, rising from the low of $3,252 on the 27th to $3,685 this morning, a new high in more than 5 months, with a maximum increase of over 13% during the period.
Although it has fallen back to $3,604 before the deadline, the 24-hour increase has narrowed to about 6%, but it is still one of the best performing tokens among the top 10 currencies, exceeding Bitcoin's 24-hour increase of 3.6%. The market is focusing on the reasons for Ethereum's sudden surge yesterday.
The Ethereum ETF fund inflow scale is approaching the Bitcoin ETF
It is worth noting that from the recent observation of the inflow of Ethereum spot ETFs, the market funds seem to be showing a phenomenon of rotation.
According to FarsideInvestors data, the US Ethereum spot ETF had a net inflow of $901 million yesterday, while the Bitcoin spot ETF had a net inflow of $1.03 billion, the two scales are quite close, as previously the daily capital inflow of the Bitcoin ETF was far greater than that of the Ethereum ETF.
In addition, Trader T pointed out that BlackRock's Ethereum spot ETF "ETHA" set a new high in daily trading volume since its launch on the 27th, about $480 million, and the ETF currently holds 625,527 ETH, worth about $2.25 billion, but the net inflow of ETHA yesterday was 0.
Extended Reading: Bitcoin dominance drops to 58%, analyst: BTC's push to $100,000 is blocked, market funds may flow to Altcoins like Ethereum
Robinhood launches Ethereum staking service
On the other hand, the well-known US online brokerage Robinhood announced on Wednesday that it will launch an ETH Staking service for European users, which may also constitute a certain positive impact. Earlier this year, Robinhood also launched a Solana (SOL) Staking service in Europe, which is expected to attract more mainstream users to hold these tokens.
The Tornado Cash ruling brings good news for Ethereum and DeFi
Decrypt also reported that on Wednesday, the US Fifth Circuit Court overturned the lower court's ruling on the privacy protocol Tornado Cash, and the Treasury Department's OFAC's sanctions on Tornado Cash's immutable smart contract were ultra vires, because when smart contracts are immutable (meaning that no entity can modify or control them), they cannot be classified as "property" subject to current legal sanctions.
This ruling has also sparked widespread optimism in the Ethereum DeFi ecosystem, causing some decentralized protocols and privacy tokens in the Ethereum ecosystem to surge: Tornado Cash (TORN) soared nearly 830% at its peak on Wednesday, Uniswap (UNI) surged nearly 10% in the past 24 hours, and Aave (AAVE) and Ethena (ENA) also rose 5.6% and 19.3% respectively.
In the latest report, 10X Research wrote:
"As Ethereum remains the leading blockchain for DeFi, this ruling is seen as positive for the broader DeFi ecosystem and other protocols, especially those on the Ethereum network, which could have a huge impact."
Extended Reading: Is the Ethereum bull run starting? ETH surges 13%, the strongest among the top 10 tokens, ENS, Puffer... ecosystem tokens soar 50%
Ethereum has entered a second bull market, is the Altcoin season coming?
Regarding Ethereum's recovery, CryptoQuant analyst Crypto Sunmoon said in the early hours of today that Ethereum's secondary bull market has already begun.
He pointed out that in the past crypto bull markets, Ethereum often experienced two significant rallies, and the second rally cycle always significantly exceeded the price level created by the first rally cycle. This implies that Ethereum's upward momentum may continue.
FXstreet analysis pointed out that with ETH rising above the key $3,400 level, if it can maintain a bullish momentum and overcome the resistance line, it may target $4,522. NewsBTC Research Director Tony "The Bull" Severino even called out a target price of $7,500.
As Ethereum has been performing strongly recently, traders are shifting their focus to Altcoins. The Altcoin Season Index (ASI) from Blockchaincenter.net currently scores 61 points. Although it is still some distance from the 75-point threshold to declare the "Altcoin Season", if Ethereum's bullish momentum continues, it is expected to reignite market enthusiasm for Altcoins.
