Ethereum

United

<p>Ethereum (ETH) experienced a price increase recently, which is credited to the increasing expectations of <a href="https://coingape.com/spot-ethereum-etf-coming-this-week-sec-leaning-towards-approving/">spot Ethereum ETFs</a> being approved in the United States. This optimistic outlook led to a growth in <a href="https://coingape.com/trending/ethereum-price-heres-why-the-eth-price-is-rising-heavily-today/">ETH price</a> of over 25% within just two days, reaching levels not witnessed since mid-March. While there was a brief drop to around $3,800, several crucial signs indicate that this decrease is just temporary and Ethereum is projected to keep moving upwards.</p> 
<h2 id="strong-current-market-performance-of-eth-price-strong"><strong>Current Market Performance of ETH Price</strong></h2> 
<p style="text-align: center;"><img decoding="async" class="aligncenter size-full wp-image-198290" src="https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-23-092311.png" alt="Current Market Performance of ETH Price" width="2604" height="1248" srcset="https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-23-092311.png 2604w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-23-092311-300x144.png 300w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-23-092311-1224x587.png 1224w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-23-092311-768x368.png 768w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-23-092311-1536x736.png 1536w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-23-092311-2048x982.png 2048w, https://coingape.com/wp-content/uploads/2024/05/Screenshot-2024-05-23-092311-150x72.png 150w" sizes="(max-width: 2604px) 100vw, 2604px"></p> 
<p>Ethereum price is currently trading at $3,870.25, having experienced a minor increase of 3.83%. ETH has also shown a bullish trend in mid and long-term with a rise in value by 28.96% and 21.97%, over the past week and month respectively. Year-to-date, the coin has seen an increase of 108.46%. Despite this robust performance, ETH value is still 22.54% below its all-time high of $4,891.70, which was achieved on November 16, 2021.</p> 
<p>Although it has a market capitalization of $464.38 billion, making it the second-largest cryptocurrency by market cap, ETH witnessed a decrease of 10.44% in its 24-hour trading volume to reach $26.88 billion.</p> 
<h2 id="strong-key-factors-supporting-ethereum-price-uptrend-strong"><strong>Key Factors Supporting Ethereum Price Uptrend</strong></h2> 
<p>Here’s why Ethereum’s bullish momentum is likely to continue.</p> 
<h3 id="strong-1-rising-open-interest-of-eth-price-signals-confidence-strong"><strong>1. Rising Open Interest&nbsp; of ETH Price Signals Confidence</strong></h3> 
<p>One of the most compelling indicators of Ethereum’s potential for future price growth is the rising open interest in ETH futures. <a rel="nofollow" href="https://cryptoquant.com/asset/eth/chart/derivatives/open-interest?exchange=all_exchange&amp;symbol=all_symbol&amp;window=DAY&amp;sma=0&amp;ema=0&amp;priceScale=log&amp;metricScale=linear&amp;chartStyle=line" target="_blank">CryptoQuant</a> reported that within a few hours on May 20, the open interest for ETH increased from 2.8 million to 3.2 million. This increase happened at the same time that there were speculations about the <a href="https://coingape.com/us-sec-can-approve-19b-4-for-spot-ethereum-etf-what-it-means/">SEC</a> possibly giving the green light to Ethereum ETFs.</p> 
<p>The record high of $14.68 billion in open interest in U.S. dollar value shows investors’ strong belief in Ethereum’s future. A high level of open interest usually indicates a strong trend and increasing investor confidence. Traders in the perpetual futures market are showing a strong sentiment by aggressively initiating long positions.</p> 
<h3 id="strong-2-growing-demand-among-permanent-holders-strong"><strong>2. Growing Demand Among Permanent Holders</strong></h3> 
<p>Another critical factor supporting Ethereum’s bullish outlook is the increased accumulation by Permanent Holders. These are addresses that consistently buy and hold ETH without selling. On May 20, amid ETF approval rumors, Permanent Holders purchased over 100,000 ETH—the highest daily level since September 2023, according to CryptoQuant.</p> 
<figure id="attachment_198297" aria-describedby="caption-attachment-198297" style="width: 100%" class="wp-caption aligncenter">
 <img decoding="async" class="size-full wp-image-198297" src="https://coingape.com/wp-content/uploads/2024/05/Ethereum-permanent-holders-inflow.jpg" alt="Ethereum permanent holders inflow" width="4000" height="2250" srcset="https://coingape.com/wp-content/uploads/2024/05/Ethereum-permanent-holders-inflow.jpg 4000w, https://coingape.com/wp-content/uploads/2024/05/Ethereum-permanent-holders-inflow-300x169.jpg 300w, https://coingape.com/wp-content/uploads/2024/05/Ethereum-permanent-holders-inflow-1224x689.jpg 1224w, https://coingape.com/wp-content/uploads/2024/05/Ethereum-permanent-holders-inflow-768x432.jpg 768w, https://coingape.com/wp-content/uploads/2024/05/Ethereum-permanent-holders-inflow-1536x864.jpg 1536w, https://coingape.com/wp-content/uploads/2024/05/Ethereum-permanent-holders-inflow-2048x1152.jpg 2048w, https://coingape.com/wp-content/uploads/2024/05/Ethereum-permanent-holders-inflow-678x381.jpg 678w, https://coingape.com/wp-content/uploads/2024/05/Ethereum-permanent-holders-inflow-150x84.jpg 150w" sizes="(max-width: 4000px) 100vw, 4000px">
 <figcaption id="caption-attachment-198297" class="wp-caption-text">
  Ethereum permanent holders inflow (Source: CryptoQuant)
 </figcaption>
</figure> 
<p>This behavior signifies long-term confidence in Ethereum’s value, further buoyed by positive market sentiment. Popular analysts and market intelligence firms like <a rel="nofollow" href="https://x.com/santimentfeed/status/1793087138919288978" target="_blank">Santiment</a> have observed a heightened bullish sentiment towards Ethereum, with accumulation by ETH whales reaching significant levels.</p> 
<h3 id="strong-3-increasing-preference-for-eth-over-btc-strong"><strong>3. Increasing Preference for ETH Over BTC</strong></h3> 
<p>The potential approval of a spot Ethereum ETF has not just sparked enthusiasm but also shifted investor interest towards ETH. <a rel="nofollow" href="https://x.com/cryptoquant_com/status/1793532426993737985" target="_blank">CryptoQuant</a> data indicates a taker-buy ratio above one, showing more buy orders than sell orders in perpetual futures. The rise in prices is also backed by the Ethereum-Bitcoin Open Interest ratio, which rose from 0.54 to 0.67, showing a preference for Ethereum over Bitcoin among traders.</p> 
<p>Moreover, there was a significant surge in the <a rel="nofollow" href="https://www.tradingview.com/symbols/ETHBTC/technicals/" target="_blank">ETH/BTC</a> trading pair, climbing 18.8 from $0.04572 to 0.05430724, indicating an increase in Ethereum’s value relative to Bitcoin.</p> 
<h2 id="strong-conclusion-strong"><strong>Conclusion</strong></h2> 
<p>Rising open interest, trader preference shifting to Ethereum, and growing demand from long-term holders create a strong foundation for ongoing bullish momentum in the price of ETH. Although Ethereum is currently holding steady at $3,800, key indicators imply that this stability may be short-lived. The approval of spot Ethereum ETFs by the SEC may serve as a significant catalyst, driving ETH prices higher and strengthening its positive trajectory. The market is eagerly anticipating this progress, indicating Ethereum is ready for another step forward.</p> 
<p>The post <a href="https://coingape.com/blog/why-ethereum-eth-price-surge-beyond-3800-is-imminent/">Why Ethereum (ETH) Price Surge Beyond $3,800 is Imminent</a> appeared first on <a href="https://coingape.com">CoinGape</a>.</p>

Why Ethereum (ETH) Price Surge Beyond $3,800 is Imminent

Table of Contents

Coingape News Media

Other articles published on May 23, 2024

Berachain Review: Blockchain Layer 1 with Proof of Liquidity consensus

Crypto Industry Scores Major Win as U.S. House Passes FIT21 Bill

Ethereum (ETH) Exchange Volume Drops To 13.7M, ETF Crunch At Play?

Nvidia Hits $2.5 Trillion Market Cap After AI-Driven Q1

Japanese Investment Firm Metaplanet Adopts Bitcoin, Stocks Now Skyrocket

KuCoin Delists AUSD, Announces Acquirement Plan for Holders

Join our free newsletter for daily crypto updates!