Altcoin
Top 5 Reasons Why Ethereum Price Is Rising, Rally to Support It?
Today, the price of Ethereum increased by almost 3%, attracting the attention of investors. Notably, Ethereum’s performance has further gained notable momentum as its surge coincides with the bearish performance of Bitcoin price while writing. While the buzz around the Ethereum Spot ETF has likely boosted investor confidence, there are also other reasons that may have contributed to Ether’s recent price gains.
5 Reasons Why Ethereum Price Is Rising Today
While there may be a flurry of macroeconomic trends and events that may have fueled Ethereum’s price gains today, here we discuss the top five reasons behind the surge.
Ethereum ETF Buzz
The recent regulatory approval by the US SEC for the Ethereum spot ETF boosted investor confidence last week. While Ethereum price saw volatile trading last week following the news of the approval, this week investors appear to be shifting their focus towards the second largest cryptocurrency by market capitalization.
Meanwhile, the success of the Spot Bitcoin ETF in the United States, which brought the price of Bitcoin to its new all-time high in mid-March, contributed to the positive sentiment. Comparing the performance of Bitcoin, market participants now predict that Ethereum will show a similar performance.
Pectra update boosts sentiment
The price of Ethereum increased today following the recent announcement that the main developers intend to launch the Petra update by the first quarter of 2025 in a crucial meeting on the level of execution. Pectra, succeeding the Dencún update implemented in March 2023, incorporates the Ethereum Virtual Machine Object Format (EOF) and introduces EIP-7251.
Meanwhile, this update is expected to allow individual validators to stake up to 2,048 ETH, significantly higher than the current limit of 32 ETH. Additionally, this update, comprising 11 enhancement proposals, is expected to improve the EVM code on both Layer 1 e Layer 2 levels, potentially reducing operational complexity for validators.
Read also: Can TON price recover soon or is a bigger drop inevitable?
Donald Trump’s pro-crypto stance
In a recent Telegram update, QCP Capital claimed that Donald Trump’s pro-crypto comments may have triggered Ethereum’s price surge today. Furthermore, the report also suggests that investors are shifting focus towards Ethereum from Bitcoin, in anticipation of growing institutional demand once the Ethereum Spot ETF begins trading.
In particular, Donald Trump he recently said he is focused on the growth of cryptocurrency companies, considering it a “new and thriving industry.” Furthermore, he also expressed his views on the goal of making the United States a leading player in the digital asset space.
Analysts bullish outlook
Several analysts have offered a bullish outlook for the price of Ethereum. As an example, DeFiance Capital founder Arthur offered a bullish outlook for the price of Ethereum, stating that the price of Ether could reach $4,500 before the Ethereum Spot goes live in the United States.
Additionally, cryptocurrency experts Michael van de Poppe and Rekt Capital expect Ethereum’s value to rise, citing low altcoin valuations and impending consolidation. Van de Poppe expects Ethereum to hit new highs, while Rekt Capital highlights potential upside for altcoins as Ethereum consolidates a post-ETF rally.
Meanwhile, Rekt Capital also identifies a key support level for Ethereum, suggesting that a weekly close above it will confirm the bullish momentum.
Source: Rekt Capital, X
Whale accumulation increases the price of Ethereum
Today’s surge in Ethereum price is also attributed to significant whale activity, as highlighted by recent Lookonchain updates. Last week, a The Ethereum Whale the strategic purchase of 8,733 ETH, followed by a $24.7 million investment in Ethereum ecosystem tokens following SEC approval, spurred bullish sentiment.
Additionally, today, another whale withdrew significant amounts of ETH and Ethereum meme coins PEPPER coin from Kraken, with a total value of millions. With consistent withdrawals since March, the whale has racked up significant profits, signaling confidence in Ethereum’s long-term prospects.
Price and performance
Ethereum price rose 2.61% and traded at $3,902.23, after hitting a 24-hour high of $3,950.87 in the past 24 hours. At the same time, its trading volume increased by more than 64% to $17.85 billion compared to yesterday.
Meanwhile, Ethereum Futures Open Interest jumped 4.45% to $17.04 billion, according to CoinGlass data. On the other hand, Ether options open interest rose 1.63% from yesterday to $6.38 billion.
Read also: 4 Best Altcoins to Roundup This Week