- Ethereum surged 41% in eight days, reaching $3,332, driven by pro-crypto leadership gains and rate cuts from the Fed and Bank of England.
- U.S. spot Ether ETFs attracted $500M in four days, led by BlackRock’s ETHA, boosting institutional demand for Ethereum.
- Ethereum’s total value locked (TVL) rose from $45B to $61B in a week, showing strong growth in DeFi and stablecoin market cap expansion.
Ethereum (ETH), the second-largest cryptocurrency by market cap, has experienced significant growth, trading at approximately $3,392 as of November 12. Over the past eight days, Ethereum has surged by 41 percent, making it one of the most-traded assets in the market. This upward momentum follows pro-crypto leaders gaining influence in the recent U.S. elections.
Additionally, Ethereum has benefited from the Federal Reserve’s rate cut, which was followed by a similar action by the Bank of England. These factors have combined to fuel Ethereum’s current price rally and strengthen investor sentiment.
Institutional Inflow and Growing Stablecoin Market Bolster Ethereum
Notably, institutional investors have driven much of Ethereum’s recent surge, particularly through U.S. spot Ether ETFs, which attracted over $500 million in cash inflow in the past four days. BlackRock’s ETHA ETF has led this surge, underscoring institutional interest in Ethereum as a mainstream investment option.
Additionally, Ethereum’s stablecoin market cap has grown by over $9 billion in just over a week, highlighting the increased demand for stable assets within the Ethereum ecosystem. This growth in the stablecoin market further supports the network’s liquidity and stability, adding to the strength of Ethereum’s current price position.
Increased Total Value Locked and Positive Market Sentiment
Furthermore, Ethereum’s total value locked (TVL) has risen from $45 billion to $61 billion within the last week. This notable increase demonstrates Ethereum’s standing in the decentralized finance (DeFi) sector. The recent developments indicate that Ethereum is not only a key player in DeFi but also shows significant market resilience, even during periods of market volatility.
Besides, as Ethereum’s core developers and community members meet at Devcon 2024 in Bangkok, the network’s positive momentum and investor enthusiasm remain strong. The meeting will likely further discuss Ethereum’s roadmap and plans to maintain its competitive position in the Web3 space.
Technical Indicators and Market Sentiment Signal Positive Outlook
Recently, Ethereum has reclaimed the 200-week Moving Average (MA) as a support level, a critical technical indicator that strengthens its current bullish trend. This movement has brought renewed optimism, with Ethereum’s fear and greed index hitting 81 percent, signaling extreme greed among investors.
Therefore, this shift in sentiment indicates confidence in Ethereum’s future growth, particularly as it positions itself for more potential price increases. If the bullish momentum continues, analysts predict Ethereum could reach $6,000 by year-end, supported by both institutional interest and strong market sentiment.
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