- The world’s second-largest cryptocurrency, Ethereum (ETH), is showing strong movements as its price approaches the $2,100 level again.
- As reported by COINOTAG, there is also a possibility of Ethereum setting a new all-time high in 2024.
- A significant factor contributing to Ethereum’s growth is BlackRock officially applying for a spot ETH ETF (Ethereum-based Exchange Traded Fund).
SEC has initiated discussions on spot Ethereum ETFs: What impact could these ETFs have on the price if they successfully receive approval from the SEC?
Ethereum ETFs and Their Potential Impacts
The world’s second-largest cryptocurrency, Ethereum (ETH), is showing strong movements as its price approaches the $2,100 level again. The bullish trend is emerging with the U.S. Securities and Exchange Commission (SEC) initiating discussions for the approval of spot Ethereum ETFs. As of the time of writing, the ETH price is trading at $2,092 with a 2% increase, and the market cap is $252 billion.
Crypto analyst Michael van de Poppe expressed a bullish trend for Ethereum based on the Fidelity application. In light of this application, he believes that Ethereum is ready to reach $3,500 in the first quarter of 2024 following Bitcoin’s rise. As reported by COINOTAG, there is also a possibility of Ethereum setting a new all-time high in 2024.
As reported last week, Ethereum whale accumulation continues to be strong. Additionally, on-chain data indicates changes in wallet ownership. According to Santiment, the largest Ethereum wallets exhibit a positive pattern, indicating a significant shift.
While exchange wallets stand at their lowest level in the last six months at 8.03 million ETH, non-exchange wallets have reached an all-time high of 41.03 million ETH. This trend suggests a movement of more coins away from exchanges toward individual storage preferences.
ETH Price Volatility and Future Movements
In November, ETH’s price outperformed Bitcoin with a 13% increase compared to Bitcoin’s 8%. A significant factor contributing to Ethereum’s growth was BlackRock officially applying for a spot ETH ETF (Ethereum-based Exchange Traded Fund).
Nevertheless, with decreasing media interest around ETFs, on-chain data indicates that Ethereum’s price volatility surpasses that of Bitcoin. This trend, along with the swing trader and short-term day trader incentives, could encourage more investment in ETH than BTC in December.
According to IntoTheBlock, ETH’s 30-day Average Intraday Volatility currently shows Ethereum’s Average Volatility score of 0.45%, surpassing Bitcoin’s score of 0.32%. For a significant part of November, the Ethereum price fluctuated between $2,133 and $1,917. Repeatedly testing these horizontal levels twice each suggested a sense of uncertainty among market participants.
During the recent two-week consolidation process, the Ethereum price experienced two pullbacks from the $2,133 resistance, revealing significant upper supply. These pullbacks highlighted the formation of a bullish reversal pattern known as a double bottom on daily time frame charts. The question remains whether the ETH price will hit $3,000 by the end of 2023.
