- Ethereum’s price is up due to an increase in network activity and expectations of a spot ETF approval in 2024.
- Ethereum’s price reached a year-to-date high of over $2,700 but experienced a sell-off following the approval of a spot Bitcoin ETF.
- Ethereum is now aiming to start a recovery driven by growing network activity.
Rise in Network Activity
Ethereum, the largest layer 1 blockchain based on total value locked, is experiencing a significant increase in network activity. This rise in activity could be contributing to the current uptick in Ethereum’s price.
Spot ETF Approval Impact
Ethereum’s price initially reached a year-to-date high above $2,700 in anticipation of a spot Bitcoin ETF approval. However, following the approval, there was a wider market sell-off, leading to a decline in Ethereum’s price as well.
This week, Ethereum’s price is attempting to recover from the earlier sell-off. The recovery is driven by the growing network activity on the Ethereum blockchain. Increased network activity often indicates greater usage and demand for Ethereum, thus positively impacting its price.
The combination of increased network activity and expectations of a spot ETF approval in the future are generating positive momentum for Ethereum’s price. However, it is important to consider the potential impact of market dynamics and regulatory decisions on the price volatility of cryptocurrencies like Ethereum.