News report:
Ethereum (ETH) is the second largest cryptocurrency in terms of market capitalization globally, and its upward trend seems very strong, possibly reaching the level of $3,000 soon. Despite the efforts of most top cryptocurrencies (including Bitcoin (BTC), Solana (SOL), and many others) to gain momentum, the value of ETH has risen by over 4%.
With the increase in open interest contracts and funding rates, as well as the apparent growth of the network, the demand for Ethereum in the market is rapidly increasing. Faced with this series of positive developments, many investors are beginning to anticipate whether ETH can further rise, surpass the $3,000 mark, and become the protagonist of the next bull market.
According to data from Binance, ETH rose by 18.7% between September 17th and September 24th, outperforming the increase in Bitcoin. Bitcoin’s price during the same period was $63,000, with a growth of 1.8%. The overall market capitalization of the cryptocurrency market increased by 2%, reaching $2.3 trillion.
ETH/BTC Strengthens
ETH has risen by 17.5% in the past seven days, showing significant performance compared to Bitcoin’s 9.8% increase during the same period. Recently, the ETH/BTC trading pair reached a three-year low of 0.0384, but surged by approximately 7.5% in the past week and exceeded a three-week high of 0.0424 on September 23rd. This consumption of ETH/BTC has triggered a significant increase in demand for ETH in the market.
Inflows of Ethereum ETF Funds Turn Positive
Last week, the inflows of funds into the US spot Ethereum ETF turned positive, with inflows of $5.2 million on September 19th and $2.9 million on September 20th. However, the inflows of funds into Ethereum investment products still lag behind Bitcoin. ETH has seen a net breakthrough in funds for the fifth consecutive week, totaling over $29 million between September 16th and September 20th. This phenomenon is mainly due to the continuous outflow of funds from trust funds and the failure of newly issued ETFs to attract sufficient funds.
The strong performance of ETH also reflects in the previous dominance of the Bitcoin market. Data shows that Bitcoin’s market dominance fell from 58.7% on September 19th to 57.4% on September 24th, indicating a relatively weak performance of Bitcoin compared to altcoins like ETH.
With the first step in the dominance of Bitcoin, the market expects the ETH/BTC ratio to further rise, triggering an enhanced bullish sentiment among investors and potentially driving more funds towards Ethereum-related investment products.
Bullish On-Chain Indicators for ETH
On-chain indicators that reflect market sentiment further support this bullish outlook for ETH. The current long/short ratio for ETH is 1.033, indicating a bullish market sentiment.
In addition, its open interest contracts have increased by 4.8% in the past 24 hours, steadily rising since September 9th, 2024.
The increase in open interest contracts indicates that longs are building more positions. Currently, 50.82% of top traders hold long positions, while 49.18% hold short positions.
Increased Ethereum Network Activity Indicates Growing Demand for ETH
Analyzing Ethereum’s network activity and scaling solutions is an important factor in maintaining the support level of $2,600. As the core of the Ethereum ecosystem, an increase in the transaction volume of decentralized applications (DApps) usually reflects an improvement in demand for ETH.
Although the number of independent active wallets for Ethereum DApps has decreased slightly by 1.42% in the past 24 hours, the transaction volume has soared by 21.92%. This indicates that despite a decrease in the number of users, the activity intensity on DApps remains significantly increased.
Furthermore, driven by the growth of DeFi platforms such as Uniswap, Balancer, ParaSwap, and Aave, the focus of DApp transactions on the Ethereum network has increased by 6.5% in terms of architecture. The total locked value (TVL) of Ethereum has also increased from $44.1 billion on September 18th to $49.35 billion on September 24th, indicating more user interaction with the blockchain.
The continued growth of the Ethereum network, increased trading activity, and improved DApp usage are key drivers in maintaining the support price of ETH above $2,600.
