In a significant market development, Ethereum (ETH) has crossed the $4,000 mark for the first time in ten months, closing the first week of December with an impressive 40% gain in the weekly timeframe. This increase has been closely linked to a broader rally in the crypto market, particularly with Bitcoin (BTC), which recently reached new highs. All time highs.
Ethereum rises 61% as ETF demand increases
according to Per Bloomberg, Ethereum exchange-traded funds (ETFs) in the United States experienced unprecedented demand, recording $428 million in daily inflows on Thursday alone.
This surge in investment interest reflects growing confidence in Ethereum, especially after Donald Trump’s election victory on November 5, which sparked a bullish sentiment across the country. The crypto landscape. Since then, Ethereum has outperformed Bitcoin, boasting a staggering 61% increase in value.
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The meeting The appointment of Paul Atkins to head the Securities and Exchange Commission (SEC) has fueled further excitement for Ethereum. Atkins, a supporter of pro-crypto regulation and an advisory board member for the advocacy group Token Alliance, is seen as a positive force for the crypto industry.
Bloomberg suggests that under his leadership, restrictions preventing investors from earning a yield on staked ether through ETFs could be reconsidered, increasing the appeal of these investment vehicles.
Altcoin season in full swing
Nick Foster, founder of crypto trading platform Derive.xyz noted, “Now that Bitcoin Having reached $100,000, it seems that investors are looking for the next opportunity.
Forster highlighted that Ethereum is well below its all-time high of $4,878 reached in November 2021, prompting many investors to shift their focus and explore the potential for profit in altcoins like ETH.
The growing interest in Ethereum is also evident in the derivatives market, where CME Group Inc. Open interest in Ether futures contracts reached record levels on , significantly outstripping growth in Bitcoin futures.
Le Shi, managing director of market-making firm Oros, commented that US institutions tend to favor regulated investment vehicles, resulting in a greater concentration of activity in CME ether futures and ETH ETFs.
In addition, Glassnode’s founders—Yan Alleman, Jan Happel, and Raphael Schütlez-Kroft— pointed out As for the resilience of altcoins amid Bitcoin’s recent volatility.
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Despite Bitcoin experiencing a 13% decline, altcoins have largely held their value, indicating a strong market sentiment. The Altcoin index Hitting 100 further confirms that the market is in the midst of “altcoin season”, with expectations of significant moves approaching the week.
Looking ahead, the outlook for the market’s second largest crypto remains optimistic, with rising expectations for both institutional and retail investments as the current market cycle unfolds.
Analysts are already there predicted That gain could soon surpass Ethereum’s previous all-time price, setting the stage for a potentially transformative period in the cryptocurrency market.
At the time of writing, ETH trades at $3,990.
Featured image from DALL-E, chart from TradingView.com
