ETH price surprised the market with a notable show of strength. Cointelegraph explains what is behind the bullish momentum.
Ether (ETH) price broke the resistance at $2,400 for the first time since May 2022, as traders turned their attention to the possibility of an Ethereum exchange-traded fund (ETF) coming after a spot Bitcoin ETF is approved.
Ether price rose sharply from the opening price of $2,343 on Jan. 10, soaring more than 7.8% in the last 24 hours and 85% over the last 12 months to reach a year-to-date high of $2,444.
ETH was the only non-stablecoin coin among the top 10 cryptocurrencies by market capitalization that traded with a bullish bias in the minutes after the SEC’s incorrect tweet on spot BTC ETF approvals contributed to significant price volatility in Bitcoin (BTC) price.
Top 10 cryptocurrencies. Source: CoinMarketCap
The last time Ether traded above $2,400 was on May 3, 2022, when it reached a high of $2,529 before dropping to lows below $1,000 on July 18, 2022, following the implosion of the Terra ecosystem.
Tokens of layer 2 networks such as Mantle’s MNT and Optimism’s (OP) gained as much as 9% and 15% respectively. These networks are built atop the Ethereum network but operate as independent blockchains, allowing users to transact cheaply and much faster than the base blockchain.
Crypto analysts on X suggest market participants are getting ready for a spot Ethereum ETF approval, giving professional investors in the U.S. indirect exposure to ETH.
“Currently, the momentum is skewed surrounding Bitcoin and the ETF approval, but Ethereum might also get a Spot ETF”, CEO and Founder MN Trading Michaël van de Poppe said in a post on X.
Data from Coinglass shows short-position liquidations for Ethereum reaching $31.7 million over the last 24 hours, with the tally still increasing at the time of writing.
Ethereum liquidations chart Jan. 10. Source: Coinglass
Meanwhile, the SEC is expected to make its decision on all spot Bitcoin ETF applications onJan. 10.
Market participants are confident that the approval will happen imminently, especially after r the Cboe gave notice of approved securities listings from several asset managers on Jan. 10.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.