ETH, Ethereum’s native token surged 5.75% in the past 24 hours taking the token price to approximately $3,640 while the broader crypto market having gained 2.82% in the past 24 hours.
Bitwise Asset Management’s recent filing with the U.S. Securities and Exchange Commission (SEC) for a cryptocurrency exchange-traded fund (ETF) is largely to blame for the rally. Ok, so the proposed ETF will be based on Bitwise’s 10 Crypto Index Fund (BTC 75.14%; ETH 16.42%; other crypto 8.46%) solana, XRP, Cardano, etc.
Ethereum ETF Filing Boosts Confidence
The filing has boosted hopes for approval of cryptocurrencies in SEC’s fund and boosted gains in the cryptocurrency portfolios. A historical $4 billion in 24 hours brought ether’s futures market open interest (OI) to $24 billion, a historic high.
The bullish sentiment has also been boosted with weekly funding rates for Ether futures still heading into positive territory at around 0.53% since October. An excited room of analysts say that the OI and the sustained funding rates are helping engender a feedback loop that is driving in more market participation and price momentum.
Ether’s rally is technically supported by a breakout from the 50-period exponential moving average (EMA) on the four-hour chart, which has been holding up over its recent uptrend. In addition, the cryptocurrency indeed confirmed a breakout from the cup and handle pattern another bullish continuation structure.
The breakout above the $3,440 neckline puts a $3,940 price target in play, more than 10% higher in December. Other commentators note that these recent developments point to a nascent Ethereum community which is more confident due to solid market fundamentals, and evidence—the bullish sentiment associated with ETF speculation, as well as technical indicators.
