Ethereum Price Surpasses $4,000 with 40% Weekly Surge
Ethereum (ETH) has exceeded the $4,000 mark for the first time in over ten months, closing the first week of December with a 40% increase. This rise is linked to a broader crypto market rally, especially Bitcoin (BTC), which recently reached new all-time highs.
Ethereum Surges 61% As ETF Demand Grows
Bloomberg reports that U.S. Ethereum exchange-traded funds (ETFs) saw record demand, with daily inflows reaching $428 million. This investment interest reflects increased confidence in Ethereum, particularly following Donald Trump’s election victory on November 5, which sparked bullish sentiment across the crypto landscape. Since then, Ethereum's value has risen by 61%.
The appointment of Paul Atkins as head of the Securities and Exchange Commission (SEC) further enhances enthusiasm for Ethereum. Atkins supports pro-crypto regulation and is expected to reconsider restrictions on yield earning from staked Ether through ETFs, increasing their attractiveness.
Altcoin Season In Full Swing
Nick Forster, founder of Derive.xyz, stated that following Bitcoin's rise to $100,000, investors are looking for new opportunities. Ethereum remains below its all-time high of $4,878 from November 2021, prompting interest in altcoins like ETH.
The derivatives market shows increased activity, with open interest in Ether futures on CME Group Inc. reaching record levels, outpacing Bitcoin futures growth. Le Shi from Auros noted that U.S. institutions prefer regulated investment vehicles, concentrating activity in CME Ether futures and ETH ETFs.
Founders of Glassnode—Yan Allemann, Jan Happel, and Rafael Schutlze-Kraft—indicate that altcoins have remained resilient amid Bitcoin's volatility. Despite a 13% dip in Bitcoin, altcoins largely retained value, suggesting strong market sentiment. The Altcoin Index reaching 100 confirms an ongoing “Altcoin Season,” with expectations for significant movements as the weekend approaches.
The outlook for Ethereum remains positive, with rising expectations for institutional and retail investments as the current market cycle progresses. Analysts predict potential gains could soon exceed Ethereum’s previous all-time price, signaling a transformative phase in the cryptocurrency market.
As of now, ETH trades at $3,990.
Featured image from DALL-E, chart from TradingView.com