Ethereum Surges 8% Amid Robust Network and Market Activity

The price of the second-largest cryptocurrency by market capitalization increased by nearly 8% in a day—from $3400 to $3650—amid growing optimism among traders and anticipation of exchange-traded funds.

In daily dynamics, the asset outperformed Bitcoin and other close competitors. ETH is trading 24% below its all-time high. 

According to analysis by Lunar Crush, Ethereum’s momentum is driven by several factors, including “ultra-strong” user engagement.

?Ethereum is showing ultra-strong activity today, eclipsing many other assets…

14 hours ago
Average social and market activity gave $ETH a LunarCrush AltRank™ of 64.

11 hours ago
Social activity accelerates as price also rises resulting in a much stronger AltRank™ of 10.… pic.twitter.com/9ppFegfuv4

— LunarCrush (@LunarCrush) April 8, 2024

“Social activity continues to accelerate, driven by strong price action and market volumes,” experts noted. 

According to Derbit, open interest in ETH options is around $600 million with a strike price of $4000. At the $3700 and $5000 levels, the figure is $375 million. 

Cryptocurrency author and developer Vijay Boyapati emphasized that the likelihood of spot Ethereum ETF approval is a driving force for the asset. However, he believes the momentum may end if the instruments are rejected. 

All the hot money that flowed into ETH because of ETF hopium is going to go back into #Bitcoin once the Ethereum ETFs are all rejected.

— Vijay Boyapati ? (@real_vijay) April 8, 2024

“All the hot money that flowed into ETH due to ETF hype will return to Bitcoin,” the expert warned. 

Analytical firm Santiment stated that “thanks to Ethereum’s rise at the start of the week,” ERC-20 assets “on average significantly outperform the market.” Over the past week, the sector has grown by 8.1%. 

? Powered by #Ethereum‘s rise to start the week, #ERC20 assets have been well ahead of the markets on average. The sector has grown by +8.1% in the past week. Keep an eye on the continued surge of $TON (+21%), $LDO (+12%), and $ENA (+12%)

Watchlist link: https://t.co/uex3LH2qHC pic.twitter.com/9wAvW1TLYe

— Santiment (@santimentfeed) April 9, 2024

Earlier, JPMorgan expert Nikolaos Panigirtzoglou suggested that the US Securities and Exchange Commission might eventually approve spot ETFs based on the second-largest cryptocurrency by market capitalization.

In March, Bloomberg exchange analyst Eric Balchunas halved the probability of launching the instruments in May—from 70% to 35%. In the same month, specialists from market maker GSR estimated the chances at 20%.

In the first quarter, Ethereum’s net profit reached $369 million—tripling compared to the previous reporting period. Over this period, more than $1.1 billion was spent on fees.