Ethereum Price Surges Ahead of Bitcoin ETF Approval
Ethereum price saw a 10% increase within the weekly timeframe, briefly surpassing the $2,400 mark on January 10. This surge comes ahead of the anticipated approval of a Bitcoin ETF. Despite the recent controversy surrounding false SEC approval news for Bitcoin ETFs, Ethereum’s price has maintained a steady upward trend, reaching as high as $2,440.
Ethereum Outperforming Bitcoin in Derivatives Market
Between January 7 and January 10, Ethereum’s price growth of 11% has outperformed Bitcoin’s 4%. This performance is reflected in the derivative market metrics, indicating that Ethereum could continue to outperform Bitcoin if a positive verdict on Bitcoin Spot ETFs is issued by the SEC. The higher positive funding rate and increased open interest in Ethereum compared to Bitcoin suggest a greater demand for long positions and a more optimistic sentiment towards ETH.
ETH Open Interest Growth Signals Potential Price Gains
ETH Open Interest has increased by 14.6% from $3.71 billion to $4.57 billion, while BTC open interest has only seen a 5% boost during the same period. This indicates that more new entrants are bringing fresh capital to Ethereum compared to those closing out their positions. Traders are betting on Ethereum to deliver larger price gains in the future.
Will ETH Reach $3,000 After BTC ETF Approval?
The current funding rate and open interest trends suggest that traders anticipate higher price gains in Ethereum after a positive ETF verdict. However, there is a major resistance sell-wall around the $2,475 range based on IntoTheBlock’s data. If derivative traders continue increasing their bullish positions and funding rates remain elevated, Ethereum’s price could break above $2,500 for the first time since May 2022. On the other hand, a downtrend in the market could test the $2,200 support level.
Hot Take: Ethereum Shows Strength and Potential
Ethereum’s recent price surge and strong performance in the derivatives market indicate its potential to outperform Bitcoin. With anticipation surrounding the Bitcoin ETF approval, ETH has shown resilience and maintained an upward trend. While there are resistance levels to overcome, if bullish sentiment and funding rates continue to rise, Ethereum could reach new heights and reclaim the $3,000 mark.
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