Ethereum is an open-source, decentralized computing platform that facilitates the creation of smart contracts and decentralized applications (dapps). As the second-largest cryptocurrency by market capitalization, the ETH Coin price has been on a steady climb in recent months.
As we found on CoinMarketCap, the Ethereum Coin price has surged nearly 30% in the last 7 days, capturing investors and trader attention. Significantly, this performance gain coincides with Bitcoin’s downturn.
While the Spot Ethereum ETF buzz has likely boosted crypto investors and traders confidence, other factors may also have contributed to the recent rise in ETH Coin’s price. Here are the top 5 reasons behind Ethereum’s price surge and whether this rally is likely to continue:
Top 5 Factors Why Ethereum’s Price Surge This Week
1. Spot Ethereum ETF Buzz
The recent approval by the U.S. SEC for the Spot Ethereum ETF has boosted investor and trader confidence. Despite Ethereum’s price volatility last week after the news, investors are now turning their attention to the second-largest cryptocurrency by market cap.
Meanwhile, the successful launch of the Spot Bitcoin ETF in the U.S., which pushed Bitcoin’s price to a new all-time high in mid-March, has bolstered positive sentiment. Market participants now expect Ethereum to exhibit a similar performance.
2. Donald Trump’s Bold Support for Cryptocurrency
QCP Capital indicated that Donald Trump’s pro-crypto comments might have sparked this week’s Ethereum price surge. The report also suggests that investors are shifting their focus from Bitcoin to Ethereum, anticipating increased institutional demand once the Spot Ethereum ETF begins trading.
3. Pectra Update Ignites Positive Buzz
The ETH Coin’s price surged after core developers announced plans to roll out the Pectra upgrade by Q1 2025 during a crucial execution layer meeting. Pectra incorporates the Ethereum Virtual Machine Object Format (EOF) and introduces EIP-7251.
This update is anticipated to allow individual validators to stake up to 2,048 ETH and also includes 11 improvement proposals aimed at enhancing EVM code on both Layer 1 and Layer 2 levels, potentially simplifying operations for validators.
4. Whale Activity Drives Ethereum Price Surge
This week’s rise in Ethereum’s price is largely due to notable whale activity, according to recent updates from Lookonchain. Last week, an Ethereum whale strategically bought 8,733 ETH and invested $24.7 million in Ethereum ecosystem tokens after SEC approval, boosting bullish sentiment.
Additionally, on 27 May, another whale withdrew large amounts of ETH from Kraken platform, amounting to millions in value. With consistent withdrawals since March, this whale has amassed substantial profits, indicating strong confidence in Ethereum’s long-term potential.
5. Optimistic Forecast from Analysts
Many popular crypto analysts have provided an optimistic forecast for the ETH Coin. As per our expert’s technical analysis, the ETH Coin could reach $4,500 by the end of June month.
Moreover, crypto experts Michael van de Poppe and Rekt Capital foresee a rise in Ethereum’s value due to low altcoin valuations and upcoming consolidation. Van de Poppe expects Ethereum to reach new highs, while Rekt Capital points out the potential advantages for altcoins as Ethereum consolidates following a post-ETF rally.
Ethereum (ETH) Price & Performance
As per CoinMarketCap, Ethereum’s price has surged over 3%, reaching $3,924 in the last 24 hours. Simultaneously, its trading volume soars over 68% to $18.69 billion over the last 24 hours.
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Disclaimer
The information in this article should not be considered financial advice, and the OvenAdd platform is intended only to provide educational and general information. Please conduct your own research and consult a financial advisor before making any investment choices.
