Ethereum Sees 10% Price Surge: What’s Behind the Increase?
The cryptocurrency market, spearheaded by Bitcoin (BTC) and Ethereum (ETH), witnessed a significant rebound today after enduring its worst crash in 2024 over the past 48 hours. Recent crypto data indicates that the total market capitalization surged by approximately 5 percent, surpassing $2 trillion during the early Asian trading session on Tuesday.
Ethereum’s price saw a notable recovery from a critical support level around $2,171, surging by more than 10 percent to hit a daily peak of roughly $2,547. Amidst the heightened volatility in the crypto sphere, an estimated $633 million was liquidated from the industry within the previous 24 hours.
During the market downturn that coincided with major global stock index declines on Monday, Ethereum’s fear and greed index plummeted to a mere 17 percent, signaling extreme apprehension towards further market capitulation. Nevertheless, on-chain data analysis revealed that whale investors capitalized on the situation, showcasing a shift towards a more optimistic stance. Market analysts anticipate a bullish trajectory for the crypto market in the fourth quarter following a turbulent August and potentially September.
For example, a whale withdrew 16,236 Ether valued at approximately $40 million from the HTX exchange. Similarly, notable figures like Justin Sun withdrew 14,884 ETH (equivalent to $35.97 million) from Binance, bringing his total ETH holdings since February to 392,474 ETH.
In parallel developments, US-based spot Ether ETFs experienced a net cash inflow of about $1.64 million on Monday, primarily driven by VanEck’s ETHV and Fidelity’s FETH offerings.
Looking ahead, Ethereum’s price against the US dollar appears poised to revisit its historical peak in the short term, propelled by favorable market fundamentals. With a fully diluted valuation of around $302 billion, the large-cap altcoin has been establishing macro higher highs and higher lows, indicative of an upward-trending market.
In conclusion, the recent market turbulence and subsequent recovery underscore the inherent volatility and resilience of the cryptocurrency landscape, with Ethereum and Bitcoin leading the charge towards renewed market optimism and potential growth.
