Ethereum (ETH) witnessed a strong surge during U.S. trading hours, experiencing a 6.5% increase to reach the $2,630 level. This rapid growth can be attributed to a growing market trend and the introduction of Australia’s first Ethereum spot ETF. After facing selling pressure in September, ETH has shown signs of recovery, generating positive expectations among traders.
Australia’s First ETH Spot ETF Makes its Debut
Monochrome Asset Management is set to launch the first Ethereum spot ETF in Australia, known as IETH, on the Chicago Board Options Exchange (Cboe) platform. This ETF offers investors the opportunity to directly trade physical Ethereum, injecting new energy into the market. Monochrome previously took a similar step in June with the Bitcoin spot ETF, IBTC. This move towards regulatory compliance in the market is seen as a significant development for Ethereum.
Vitalik Buterin Proposes Enhancements to PoS
Vitalik Buterin, the co-founder of Ethereum, has put forward key proposals to improve the Proof of Stake (PoS) mechanism. He plans to introduce a “single session finality” system to expedite block confirmation and suggests reducing the minimum required ETH for staking to one. This change aims to encourage greater user participation in the Ethereum network.
Galaxy Digital Transfers Large Amounts of ETH
According to Lookonchain data, Galaxy Digital’s OTC wallet transferred 13,580 ETH (approximately $34.3 million) to exchanges such as Coinbase, OKX, and Binance. Such significant movements of assets can create short-term price volatility and potentially lead to selling pressure.
Whales Hold 44.4% of ETH Supply
Data from the crypto analysis platform Santiment reveals that wallets with large holdings of ETH account for 44.4% of the Ethereum supply. The continuous accumulation of ETH by whales indicates strong confidence in Ethereum among major investors and raises expectations for further price increases. Furthermore, the stability of whale transactions exceeding 100,000 ETH around the $1,520 level suggests that the market is in a strong consolidation phase.
Ethereum Prepares to Break Out of Consolidation
Over the past two months, Ethereum has been trading within a triangular formation, indicating a consolidation phase. However, this pattern has allowed buyers to gain strength as trend lines converge. The price of Ethereum is expected to rise to $3,500 and then $4,100. However, if market resistance persists, this process may be prolonged, and consolidation tendencies might continue.
The recent recovery in Ethereum’s price and the introduction of new financial products are significant developments to monitor in the market. The increasing accumulation of ETH by whales could signal a potential price breakout. Traders should remain flexible in their strategies to seize new opportunities in these dynamic market conditions.
In conclusion, the momentum in the Ethereum market is picking up pace. The launch of the ETF in Australia, proposals for PoS improvements, and large-scale asset transfers are key factors shaping the trajectory of ETH in the near term.
