Ethereum’s Price and Institutional Interest in Spot ETF for Crypto

Ethereum opened today with markets slightly down, but its price structure remains near $2,000 due to growing institutional interest in approving crypto spot ETFs. On-chain data shows resilience for Ether, with high fees returning to the network, boosting validator yield and causing a net reduction in crypto issuance.

Market Enthusiasm for a Potential Spot ETF for Crypto

The potential for a spot ETF in the United States is supporting Ethereum’s price, despite the market opening down today. Since mid-October, Ether has matched the local April high but failed to break the $2,140 level permanently. The market’s optimism peaked on November 1 when the SEC acknowledged Grayscale Investment’s request to convert its trust into a marketable security on the Nasdaq stock exchange.

Traders provided a strong hand on November 9, as BlackRock followed Grayscale’s footsteps, causing an immediate 12% pump in Ethereum’s price. This positive market confidence sets the stage for a potential real crypto bull run once the U.S. federal market regulator approves these requests, supporting a return to the $2,500 area.

Derivatives Markets and Ethereum Chart Analysis

The amount of call options has exceeded put options, with open interest rising undaunted, and trading venues like Deribit, OKX, CME, and Bybit dominating the markets. The Ethereum chart shows prices remaining above the EMA 50 on a 4-hour time frame, with $2,000 acting as a watershed between bullish and bearish scenarios in the short term.

The importance of closing the week above this psychological figure is crucial for a further leg up and marking new annual highs.

On-Chain Analysis of Ethereum

Despite the struggle to maintain $2,000 per coin, on-chain data for Ethereum remains encouraging. The surge in fees on the crypto network has posed challenges for users but is beneficial for validators, boosting their profits. The soaring fees have also led to a state of deflation, with the network burning more coins than it puts into circulation daily.

The situation is reminiscent of Bitcoin, and if it remains unchanged, Ethereum’s price could rise above its current levels, possibly reaching $2,500 and $3,000.

Hot Take: Ethereum’s Potential for a Bull Run in 2022

As institutional interest in a spot ETF grows and on-chain data continues to show resilience for Ethereum, the potential for a crypto bull run in early 2024 is becoming increasingly likely. With the market’s enthusiasm and positive outlook for Ethereum’s price structure, it may finally break new annual highs and reach the $2,500 and $3,000 price levels.