Ethereum Price Surges 11% in 2024 with Institutional Inflows
The price of Ethereum (ETH) has experienced a significant surge, increasing by over 11% in 2024. This growth trend began in December 2023 and has been driven by a rise in institutional inflows to investment products.
Steady Growth and Bullish Momentum for Ethereum
Currently, Ethereum is trading at $2,537, reflecting a 5.37% growth in the past week and a 14.56% increase over the last month. Despite a slight market correction, bulls remain optimistic about further gains.
Positive Performance in 2023
In 2023, Ethereum experienced a notable 91% price increase, ending the year at $2,294. Although trading volumes and institutional products remained low throughout most of the year, there was an uptick in the fourth quarter.
Quarter-to-Quarter Price Growth and Recovery
The first quarter of 2023 witnessed the highest price growth for Ethereum, reaching $1,792 and recovering from losses incurred during the bearish season of 2022. This recovery was particularly significant considering the industry collapses and macroeconomic issues that impacted crypto prices.
Ethereum’s Rise Amidst Institutional Appetite
Ethereum gained bullish momentum in Q4 of 2023 as its price surged, attracting inflows to investment products and ending the year on a positive note. The new year started with significant inflows to cryptocurrency products due to high anticipation of a spot Bitcoin ETF approval by the SEC.
Institutional Inflows to Ethereum Products
In the first week of this year, digital asset funds received $151 million in inflows. Ethereum, despite facing competition from Solana, recorded $30 million in inflows, positioning itself as an institutional favorite. In total, Ethereum products have attracted $55 million this year and $241 million in the past ten weeks.
Bullish Uptick and Spot Bitcoin ETF Approval
The recent bullish uptick is largely attributed to the anticipation surrounding the approval of a spot Bitcoin ETF by the SEC. Analysts believe this approval has fueled institutional appetite in the market. Following the approval, digital asset investment products received $1.18 billion in inflows, with trading volumes reaching a record high of $17.5 billion.
Price Performance of Other Cryptocurrencies
While Ethereum has seen a price increase in the past week, Bitcoin has experienced a correction and is down by 6.46%. Altcoins like Solana and Cardano have shown positive performance, with gains of 4.95% and 3.37% respectively.
Hot Take: Ethereum Continues to Shine with Institutional Interest
The surge in Ethereum’s price and the influx of institutional investments highlight its growing popularity and potential for further growth. With the recent approval of a spot Bitcoin ETF and increased trading volumes, Ethereum remains an attractive asset for both retail and institutional investors. As the cryptocurrency market continues to evolve, Ethereum’s position as a leading digital asset seems secure. Investors are eagerly watching to see if Ethereum can sustain its upward trajectory and outperform other cryptocurrencies in the coming months.
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