Cryptocurrencies are in the spotlight this week, with most of the attention being paid to Bitcoin. The most famous cryptocurrency rallied to $64,000 earlier this week, reaching the highest level since mid-November 2021. However, other cryptocurrencies are also experiencing very strong gains, including ETHEREUM.
Rally on the Bitcoin market is said to be driven by strong inflows into spot Bitcoin ETFs. As ETFs are much more accessible and easier to understand for an 'average Joe' than cryptocurrency exchanges and digital wallets, introduction of such investment vehicles open the world of crypto investments to a lot more investors. This spike in Bitcoin demand, driven by ETFs, is outstripping supply, and it is the prime driver behing the rally. However, success of Bitcoin ETFs greatly increases the chance of approval of spot ETFs on other cryptocurrencies, with ETHEREUM being most likely to be next.
Taking a look at ETHEREUM chart at D1 interval, we can see that the coin has been enjoying a very strong rally as of late. Coin is trading almost 60% above late-January 2024 lows. ETHEREUM climbed to the highest level since April 2022, but the rally has eased after reaching $3,500 area. This zone has been tested on Wednesday and yesterday, but no break above was delivered. Nevertheless, a brief pause following the recent rally would not be anything unusual. Note that such a pause occurred after ETHEREUM reached $3,000 area (orange circle), but the rally was quickly resumed afterward.
Source: xStation5
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