Bitcoin might have been the king earlier this week, smashing its $120,000 target and leaving Ethereum holders green with envy, but guess what happened next? The tables turned. Ethereum decided it was time to take the spotlight, and it did so with style.
Ethereum was recently trading at $3169, up 6.26% in the past 24 hours and a whopping 20% for the week. Meanwhile, Bitcoin took a little nap, dropping 1.9% and even dipping below $117,000 for the first time in five days. For ETH, this upswing marks a continuation of its impressive momentum, hitting its highest level in five months. Looks like ETH is ready to show Bitcoin who’s boss!
“After two years of underperformance, ETH is gaining traction again,” said Greg Magadini, the director of derivatives at Amberdata. Yeah, Greg, it’s like ETH finally decided to wake up from its crypto slumber and join the party.
Corporate and Institutional Buying Pushes ETH to New Heights
Over the past two years, Bitcoin has skyrocketed nearly 300%, while Ethereum’s growth has been more modest, with a 60% increase. But here’s the twist: ETH is actually down almost 8% year-to-date, while Bitcoin is still flexing its gains.
But why this sudden ETH surge? Well, for starters, publicly traded companies have been adding Ethereum to their balance sheets like it’s the hottest new trend. Also, there’s a flood of ETH-based investment products popping up. Ethereum is getting its moment in the sun, and it’s making the most of it.
Magadini pointed out that while Bitcoin investors were taking hits, Ethereum seemed to be brushing off the crypto chaos. A recent blow to the digital asset industry’s policy agenda, when the U.S. House of Representatives failed to pass three major crypto bills, didn’t seem to phase ETH at all.
“Today’s news is hitting BTC harder than ETH,” Magadini said.
Looks like Ethereum’s got some resilience, huh?
But wait, there’s more! Investors are getting bullish on Ethereum, especially after the U.S. Securities and Exchange Commission (SEC) made waves in May by saying that staking activities wouldn’t be classified as securities transactions. This got ETH fans excited, with many hopeful that the SEC will approve Ethereum exchange-traded funds (ETFs) with staking. This could send ETH to even higher heights.
Even Sharplink Gaming is jumping on the Ethereum bandwagon, having just purchased $225 million worth of ETH for its balance sheet, bringing its total holdings to around 280,000 ETH. And Bitcoin miner BitMine? They decided to get in on the action too, adding more Ethereum to their reserves and bringing their total holdings to over $500 million worth of ETH. Talk about a big move!
Magadini also pointed out that Ethereum futures open interest recently surpassed 12-month highs, levels last seen when ETH was trading at around $4,000 last December.
“This is a big deal in terms of flows and market participation in the asset,” he said.
Looks like Ethereum is finally getting its time to shine. Will it keep the momentum going? Only time will tell.
Anastasiia G
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