Ethereum Surges Above $2,000 After ETF Proposal
If you’ve been keeping an eye on Ethereum (ETH), you may have noticed that it has been holding steady above the $2,000 mark. This stability comes after the announcement of an exchange-traded fund (ETF) proposal, which has caused investment products to surge significantly.
One of the key developments is the registration of an iShares ETH Trust by BlackRock, the largest asset manager with $9.4 trillion of assets under management. Since this proposal, Ethereum saw a 9% rise, surpassing the crucial $2,000 mark.
Whale transactions consisting of at least $100,000 worth of ETH surged by 25% over the past 24 hours according to data provided by Santiment — hiking from 2,151 to 2,678 transactions over the past day.
Whale Accumulation and Market Manipulation Signals
Whales have accumulated over $58 million worth of various altcoins including Aave (AAVE), Ethereum, Arbitrum (ARB), and Pepe (PEPE) over the past week. However, this hike in whale activity has led to a decline in ETH’s price-daily active addresses (DAA) divergence to negative 45.17%, suggesting a “sell” signal due to potential market manipulation by large whales.
In addition, Ethereum’s total open interest (OI) declined from $4.15 billion on Nov. 10 to $3.85 billion at the time of writing. Furthermore, ETH’s Binance funding rate currently stands at 0.02%, indicating the dominance of short position holders until further movements.
Ethereum’s Current Position and Trading Volume
As of now, Ethereum is up by 0.7% in the past 24 hours and is trading at $2,050 with a market cap of $247.5 billion and a 24-hour trading volume of $13.4 billion.
Hot Take
Ethereum’s surge above $2,000 following the ETF proposal and BlackRock’s iShares ETH Trust registration indicates growing confidence in the cryptocurrency from institutional investors. The increase in whale activity has raised concerns about market manipulation and potential sell signals. Despite these factors, Ethereum’s current trading position remains strong with a positive trajectory for further movements.
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