Top Reasons Why Ethereum (ETH) Price Is Up Today

The total cryptocurrency market cap increased by over 2% in the last 24 hours, reaching around $2.3 trillion as of Friday. Ethereum (ETH) led the way among altcoins, with its price jumping over 5%. Ethereum’s fully diluted market value stands at approximately $306 billion, with daily trading volumes around $19 billion. It was trading at about $2,545 during the early European session on Friday.

With this price surge, more than $28 million was liquidated from the Ethereum derivatives market, mostly affecting short positions.

Why is the market turning around? Let’s dive in.

Factors Behind Ethereum’s Price Jump

Rising Demand from Whales

On-chain data from the past three weeks shows that more than 547,000 ETH, worth over $1.26 billion, was moved to various crypto exchanges. This came as U.S. spot Ether ETFs struggled to perform, keeping Ethereum in a bearish position.

However, in the past two days, there has been a shift. Large holders, or “whales,” have started moving again, with BlackRock’s ETHA leading the U.S. spot Ether ETFs with $5.24 million in cash inflows on Thursday. Notably, no U.S. spot Ether ETF recorded a net outflow that day.

Fed Policy Boost

The overall crypto market has also gained momentum due to the Federal Reserve’s move toward quantitative easing, marked by a 5-basis-point rate cut on Wednesday.

Bitcoin has been driving the bullish trend, briefly surpassing $64,000 earlier today. This was further supported by the Bank of Japan’s decision to maintain its interest rates at 0.25%.

More Growth Ahead?

From a technical standpoint, Ethereum price is likely to continue rising and potentially outshine Bitcoin ahead amid the ongoing crypto cash rotation favoring altcoins. Moreover, the ETH/BTC pair has significantly rebounded after dropping to a multi-year low earlier this month.

Also Check Out : History Repeating: Here is Where the Bitcoin (BTC) Rally May Reach This Christmas 

What are your predictions for Ethereum (ETH) in the coming months?