Ethereum Price Surges Over 8% Amid Rising Institutional Demand
The altcoin market, led by Ethereum #ETH and Dogecoin #DOGE, has experienced significant bullish momentum following Bitcoin's recent price discovery phase. Ethereum's price increased over 8 percent in the past 24 hours, trading around $3,405 on November 12 during the mid-London session.
Ethereum, with a fully diluted valuation of about $410 billion and a daily average traded volume of about $70 billion, has rebounded from the lower boundary of a rising trend that began earlier last year.
For the first time since March, Ethereum's daily Relative Strength Index (RSI) surpassed 70 percent, indicating renewed bullish sentiment. Ether's price has regained the 200-day Moving Average (MA) as support after bouncing off the 50 MA.
If bullish momentum continues, Ether's price may approach its all-time high by year-end. Additionally, crypto cash rotation is favoring large-cap altcoins, suggesting an imminent altseason.
Major Factors Driving Ethereum Bulls
Demand for Ethereum, which supports the largest Web3 ecosystem with over $61 billion in total value locked (TVL) and more than $91 billion in stablecoins, has surged amid a positive crypto outlook. Institutional investors are anticipating an Ether price breakout after months of bearish consolidation.
Recent market data shows that US spot Ether ETF issuers, led by BlackRock’s ETHA, recorded a daily net inflow of approximately $295 million, the highest since the historic approval earlier this year. Over the past four days, these issuers reported a total net cash inflow of about $500 million, indicating rising demand.
In light of heightened Ether volatility, more than $200 million has been liquidated from the ETH leveraged market, primarily affecting short traders in the past two days, contributing to a crypto short squeeze.
The Ethereum market is also responding to shifts in major jurisdictions that will enhance overall crypto liquidity. For example, the US Federal Reserve and the Bank of England initiated rate cuts last Thursday to improve economic outlooks. Additionally, the Chinese government plans to inject up to $1.4 trillion to strengthen its economy amid ongoing de-dollarization.