Ether (ETH) price broke the resistance at $2,400 for the first time since May 2022, as traders turned their attention to the possibility of an Ethereum exchange-traded fund (ETF) coming after a spot Bitcoin ETF is approved.
Ether price rose sharply from the opening price of $2,343 on Jan. 10, soaring more than 7.8% in the last 24 hours and 85% over the last 12 months to reach a year-to-date high of $2,444.
ETH was the only non-stablecoin coin among the top 10 cryptocurrencies by market capitalization that traded with a bullish bias in the minutes after the SEC’s incorrect tweet on spot BTC ETF approvals contributed to significant price volatility in Bitcoin (BTC) price.
Top 10 cryptocurrencies. Source: CoinMarketCap
The last time Ether traded above $2,400 was on May 3, 2022, when it reached a high of $2,529 before dropping to lows below $1,000 on July 18, 2022, following the implosion of the Terra ecosystem.
Tokens of layer 2 networks such as Mantle’s MNT and Optimism’s (OP) gained as much as 9% and 15% respectively. These networks are built atop the Ethereum network but operate as independent blockchains, allowing users to transact cheaply and much faster than the base blockchain.
Crypto analysts on X suggest market participants are getting ready for a spot Ethereum ETF approval, giving professional investors in the U.S. indirect exposure to ETH.
“Currently, the momentum is skewed surrounding Bitcoin and the ETF approval, but Ethereum might also get a Spot ETF”, CEO and Founder MN Trading Michaël van de Poppe said in a post on X.
Data from Coinglass shows short-position liquidations for Ethereum reaching $31.7 million over the last 24 hours, with the tally still increasing at the time of writing.
Ethereum liquidations chart Jan. 10. Source: Coinglass
Meanwhile, the SEC is expected to make its decision on all spot Bitcoin ETF applications onJan. 10.
Market participants are confident that the approval will happen imminently, especially after r the Cboe gave notice of approved securities listings from several asset managers on Jan. 10.
This article does not contain investment advice or recommendations….
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