ETF expectation and positive market sentiment drive ETH price towards $4,000

Last week ETH experienced increased token transfers and growth in active addresses

The cost of Ethereum is now almost $4,000 as investors await the launch of Ethereum ETFs. Ether (ETH) has grown by 35% in the last two weeks reaching the highest peak at $3,968. This is the highest it has been since March.

There are eight Ethereum ETFs that have been approved. They are expected to start trading very soon which has caused a lot of excitement among traders. This event could be one of the most important things to happen to Ethereum so far. It might even bring in large amounts of money from institutional investors who will invest in ETH. QCP Capital analysts say that their optimism is high as the market seems to be choosing ETH over Bitcoin (BTC).

Additionally, the mood in the market was lifted further by recent pro-crypto remarks made by ex-US president Donald Trump. He revealed his support for cryptocurrency firms through a post on Trump Media’s social media platform Truth Social hence adding more positivity around ETH.

According to blockchain analysis, there is still room for growth when it comes to Ethereum’s price. Jelle, a crypto trader who trades under an alias, pointed out how key resistance levels had turned into support zones paving a path towards $4000 which he referred to as a ‘psychological level’.

A very important reason that might have caused the recent surge of Ethereum is also the drop in the market share of Bitcoin. This week has witnessed a lot of activity involving the ETH/BTC pair as traders’ interest shifts from BTC towards ETH. Over the past 5 days alone, the dominance level for Ethereum increased by 4.4%.

According to analyst Rekt Capital, if there is a weekly close above $3,956 which many experts are vigilant about, it would confirm the continuation of the uptrend. DeFiance Capital founder Arthur Cheong predicted that this would enable ETH to achieve $4500 before finally heading for $5000.

ETH network activity remains strong. Within one week ETH token transfers shot up by 72.45% while there was also 3.58% growth in active addresses. These two metrics signify an increase in participation and demand levels thus justifying further gains made by its market value.

On-chain metrics are also supportive of a bullish outlook towards Ethereum. The open interest for ETH has reached $13.17bn with a positive funding rate showing that traders are ready to pay more in order for their long positions not to get liquidated.

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Written by Silvia Pavlof

Silvia has explored various forms of writing, ranging from content creation for social media to crafting movie scripts. Drawing on her experience as a journalist specializing in the gambling sector, she is currently investigating the impact of cryptocurrencies and blockchain on traditional gambling and iGaming.

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