While Bitcoin remains stable above $109,500, it is Ethereum that captures the attention of the markets with a strong growth performance. In the last 24 hours, ETH has gained 5%, leading the bull among the main cryptocurrencies.
Analysts report increasing upward volatility for Ethereum, fueled by renewed institutional interest and record volumes on some derivatives products based on ETH.
According to Jeff Mei, Chief Operating Officer of BTSE, investors are finally recognizing the potential of Ethereum as an investment asset.
“Ethereum is still well below its all-time highs, while Bitcoin is already close to its record levels,”
stated Mei.
Specifically highlighting how Ethereum’s blockchain is taking on a central role in the tokenization of real assets, such as stocks, money market funds, and U.S. government securities.
Ethereum ETFs surpass Bitcoin
One of the clearest signals of this renewed enthusiasm for Ethereum is represented by the inflows into exchange-traded funds (ETF).
In the last fourteen days, the ETFs on ETH have attracted over 800 million dollars, more than double compared to the less than 400 million recorded by Bitcoin in the same period.
This data, provided by SoSoValue, highlights a growing confidence of institutional investors in the second asset by market capitalization.
The increase in inflows has had a direct impact on the implied volatility of Ethereum, which has surpassed that of Bitcoin, reaching the highest level since the end of 2022.
Questo divario indica che i trader si aspettano oscillazioni di prezzo più ampie per ETH nelle prossime settimane.
Another indicator of the growing interest in Ethereum is represented by the data coming from the exchange platform Kraken.
According to Alexia Theodorou, head of derivatives at Kraken, the open interest in perpetual contracts on ETH has reached an all-time high of 30,000 ETH. This peak indicates a significant increase in speculative activity around the cryptocurrency.
However, Theodorou also highlighted that the market has not yet found a clear direction. The long/short ratio remains well below the levels of January, suggesting that investors are still cautious and waiting for more definitive signals.
The attention of the markets is not focused solely on cryptocurrencies. Traders are indeed closely monitoring the data on the United States Consumer Price Index (CPI), expected on Wednesday.
These data could influence expectations on interest rates of the Federal Reserve and, consequently, the entire market sentiment.
Higher than expected inflation could push the Fed to maintain a restrictive monetary policy, curbing riskier assets like criptovalute.
On the contrary, a slowdown in inflation could strengthen the “risk-on” climate, favoring further rises for Ethereum and the other altcoins.
Other movements in the crypto market
In addition to Ethereum, other cryptocurrencies have also recorded positive performances. Solana (SOL) gained 4.7%, while Cardano (ADA) rose by 3.3%. XRP also showed signs of recovery, with an increase of 2% that brought its price to $2.30.
The behavior of Dogecoin (DOGE) is also interesting, often considered a high-volatility bet linked to the Ethereum ecosystem. DOGE has recovered 3.7%, completely erasing the losses accumulated the previous week.
With a mix of institutional inflows, growing interest in tokenization and increasing volatility, Ethereum seems well-positioned to aim for its all-time highs.
Jeff Mei of BTSE is optimistic:
“It is very likely that Ethereum will reach and/or surpass its record price by the end of the year.”
However, analysts urge caution. Despite the positive signals, the market remains sensitive to macroeconomic factors and potential changes in U.S. monetary policy.
The future direction of Ethereum will also depend on the network’s ability to consolidate its role as a key infrastructure for decentralized finance and the tokenization of real assets.
In a constantly evolving context, Ethereum confirms itself as one of the most dynamic and promising assets in the crypto landscape, attracting the attention not only of retail traders but also of a growing number of institutional investors.
