 ▲ Ethereum (ETH) ©Coin Leaders |
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, showed an upward trend over the past 24 hours and recovered the important price range of $2,000.
According to data from CoinMarketCap, a global cryptocurrency market relay site, Ethereum, the leading altcoin, is trading at $2,029 as of 8:16 a.m. on November 21, Korean time, up 1.35% from 24 hours ago. Ether rose from a low of $1,977.20 on the day to a high of $2,066.41.
Cointelegraph, a cryptocurrency media outlet, diagnosed that the price of Ethereum has surpassed $2,000, a psychologically and historically important price range, thanks to expectations and increased institutional interest in the spot Ethereum exchange-traded fund (ETF).
According to the media, as bullish sentiment increased, the price of Ethereum rose 26.2% in 30 days and 69.5% since the beginning of the year.
Cointelegraph said, “Institutional interest in Ethereum has increased significantly, with the U.S. Securities and Exchange Commission (SEC) approving Grayscale’s ETF application and BlackRock applying for an Ether spot ETF. Bitcoin (BTC) in early 2024 Expectations for ETF approval are encouraging the inflow of institutional funds. Additionally, as Ethereum's DeFi (decentralized finance) ecosystem is flourishing, daily fees and network profits are increasing significantly. Recently, the increase in Ethereum's coin supply has turned into deflation. “The fact that it shows a positive correlation with Bitcoin price movements is also adding strength to the bullish sentiment,” he explained.
“While macro factors such as further interest rate hikes and a potential U.S. industrial crackdown may put some pressure on the price of Ether, factors such as the approval of a Bitcoin or Ether ETF, positive regulatory clarity, and easing of interest rate hikes could be catalysts for higher prices.” “It could happen,” he predicted, adding, “Ether’s price volatility is likely to continue.”
Meanwhile, according to The Block Data, a cryptocurrency media outlet, the active supply of Bitcoin and Ethereum hit a new low over the past year.
During this period, only 30.12% of Bitcoin supply and 39.48% of Ether were moved. The previous highest was 59% for BTC from 2017 to 2018 and 86% for ETH from July 2016 to 2017.
Active supply refers to the rate at which cryptocurrency has moved to external addresses, such as centralized exchanges.
If the active supply is low, it is usually interpreted that holders have a strong desire to hold the cryptocurrency for a long period of time.
