Ethereum Price Surpasses $2,500 Amidst ETF Approval Lead
The on-chain data trends provide valuable insights into the factors driving the increase in Ethereum’s price, which has now reached above $2,500. Similar to the “buy-the-rumor, sell-the-news” strategy employed by BTC speculators during the spot Bitcoin ETF approval, early signs of a similar phenomenon are emerging for Ethereum.
BTC Speculators Made 97% Profits Ahead of ETF Approval
Despite setbacks faced during the Bitcoin spot ETF approval process, speculators saw significant gains. The official filing for a spot Bitcoin ETF by BlackRock raised optimism and resulted in a 25% rally in Bitcoin’s price within two weeks. From June 15 to January 11, the price nearly doubled, allowing speculators to earn profits of up to 97%.
Ethereum Outperforms BTC Following ETF Approval
With the Bitcoin ETF process concluded, attention has shifted to Ethereum. BlackRock’s filing for a spot Ethereum ETF has attracted investors’ focus. In the past week, while BTC experienced a 3.8% drop in price, Ethereum has seen a 13.5% increase, outperforming BTC by approximately 10%.
Ethereum Whales Accumulate $1.4 Billion ETH After ETF Approval
On-chain indicators reveal that high net-worth investors and corporate entities have increased their buy pressure on Ethereum following the Bitcoin ETF approval verdict. The top 1,000 Ethereum wallets have accumulated an additional 570,000 ETH since January 11, resulting in holdings worth $1.4 billion.
Potential for Historic Gains as Investors Buy the Rumor
The recent buying spree by large stakeholders indicates a strong bullish signal for Ethereum. The timing of this accumulation suggests that investors are buying the rumor, anticipating positive verdicts on ongoing ETH applications following the BTC ETF approval. The rise in Ethereum dominance further supports this speculation.
Can Ethereum Reach $5,000 in 2024?
Given the performance of Bitcoin during the spot ETF approval, if Ethereum sees a similar outcome, it could reach $5,000. However, in the short term, ETH bulls need to overcome the $2,900 resistance level. With most ETH holders currently in profit positions and the ETF approval process ongoing, selling pressure may decrease.
Potential Resistance from Early Profit-Taking Holders
While bullish momentum is expected, early profit-taking by ETH holders who bought at lower prices could pose resistance as prices approach their break-even point. Nevertheless, the largest cluster of ETH holders is likely to have enough holdings to counter any bearish pressure.
Hot Take: Ethereum’s Bullish Momentum Continues
Ethereum’s price has surged above $2,500 and shows early signs of a “buy-the-rumor” phenomenon following the Bitcoin ETF approval. With high net-worth investors accumulating billions of dollars’ worth of ETH and positive market trends, there is potential for historic gains and a possible rise to $5,000 in 2024.
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