Originally published on: September 23, 2024
Ethereum has seen a significant surge of 18.7% from Sept. 17 to Sept. 23, surpassing Bitcoin with its impressive gains. The increase in open interest, funding rates, and network growth all point towards a strong demand for ETH.
As of now, Ether is trading at $2,650, up 4% in the last 24 hours, while Bitcoin stands at $63,678, showing a 1.8% increase in the same period. The overall cryptocurrency market cap has also risen by 2% to $2.3 trillion.
Over the past seven days, Ether has outperformed Bitcoin, with a 17.5% increase compared to Bitcoin’s 9.8% rise. Additionally, the ETH/BTC ratio has gone up by about 7.5%, reaching a three-week high of 0.0424 on Sept. 23.
The surge in the ETH/BTC ratio suggests a growing demand for Ethereum. Data from Farside investors indicates positive flows into US-based spot Ethereum ETFs, with minor inflows of $5.2 million and $2.9 million on Sept. 19 and Sept. 20, respectively.
Despite Ether outperforming Bitcoin, Ethereum investment products still see outflows, with a total of $29 million between Sept. 16 and Sept. 20, according to CoinShares.
As Bitcoin’s dominance in the market decreases, investors are becoming more bullish on Ether. Market participants expect ETH’s value against its BTC pair to continue rising, indicating a positive outlook for Ethereum investment products.
The positive funding rate for Ether reflects a bullish sentiment, pointing towards increased demand for leveraged long positions. Ethereum’s network activity, scaling solutions, and DApp usage are all crucial factors in maintaining support at $2,600.
DAppRadar data shows a slight decrease in the number of active wallets for top Ethereum DApps, but a notable increase in volume. Transactions on the Ethereum network have risen by 6.5%, driven by platforms like Uniswap, Balancer, ParaSwap, and Aave.
DefiLlama data reveals a rise in the total value locked (TVL) on Ethereum, indicating higher user interaction with the blockchain and an increased demand for Ether.
In conclusion, sustained network growth, rising transaction numbers, and DApp usage are all vital for supporting Ether above $2,600. As Ethereum continues to make strides, the road to a $3K recovery looks promising for investors.
Please note that this article does not offer investment advice. Readers are encouraged to conduct their own research before making any financial decisions.
