Ethereum’s price has surged by 25% in the last 12 days, reaching $3,517 on July 17, 2024. The main catalyst behind this increase is the anticipation surrounding the launch of an Ethereum ETF on July 23. This uptrend has been further supported by positive macroeconomic indicators and the prospect of increased institutional participation in Ethereum trading.
Following a market crash on July 5, which saw ETH price fall to $2,815, bullish traders entered a buying frenzy, pushing the price back above $3,000. The news of the impending ETF launch on July 23 then added momentum to the rally, with Ethereum price breaching the $3,500 mark. Speculators are now eyeing a potential move towards $4,000 as the ETF launch date approaches.
Another significant factor contributing to Ethereum’s price action is the increased staking deposits in the ETH 2.0 network. Investors have been depositing significant amounts of ETH into staking contracts, with total funds reaching 33,124,709 ETH as of July 17. This surge in staking is seen as a bullish signal, indicating investor confidence in Ethereum’s growth potential.
Increased staking not only reduces selling pressure in the market but also removes liquidity from short-term supply. This withdrawal of over $700 million worth of Ethereum from circulation could further drive up prices as demand increases ahead of the ETF launch. Overall, the combination of a potential ETF launch and rising staking deposits is propelling Ethereum towards new highs.
In conclusion, Ethereum’s recent price surge can be attributed to a combination of factors, including the anticipation of an ETF launch, positive macroeconomic indicators, and increased staking on the ETH 2.0 network. As investors continue to show confidence in the potential growth of Ethereum, the price is expected to continue its upward trajectory towards the $4,000 mark in the coming days. With the ETF launch scheduled for July 23, Ethereum’s price rally is showing no signs of slowing down.
