Home / News / Crypto / Ethereum / Ethereum Market Momentum: The Impact of a $154.4M Purchase and Rising ETF Expectations
3 min read

Ethereum Market Momentum: The Impact of a $154.4M Purchase and Rising ETF Expectations

Last Updated February 20, 2024 1:17 PM
Shraddha Sharma
Last Updated February 20, 2024 1:17 PM
Key Takeaways
  • Ethereum shows bullish signs, with predictions suggesting a rise to $3500. 
  • Kevin de Patoul, CEO of Keyrock, told CCN about the importance of Ether ETFs for institutional and individual investors.
  • Speculation swirls around a 54,721 ETH purchase from Binance, with eyes on Justin Sun as the potential buyer.

Ethereum is shy of the $3000 mark despite bullish momentum. The upcoming Denchun update and the potential approval of an Ethereum ETF have built anticipation that the $3500 price level will be next.

Recent research reports by Bernstein and Coinbase were also optimistic about the second-largest crypto by market cap.

With Bitcoin inflows growing after the Bitcoin ETF launch, calls for an Ether ETF grow louder. Kevin de Patoul, CEO of digital asset manager Keyrock, underlined how the ETH ETF will bring Ethereum to a broader audience of institutional and individual investors.

Ethereum’s Ambitious Trajectory 

Based on Ethereum’s current price action, crypto analyst @CredibleCrypto on X anticipates it will reach $3500. Meanwhile, optimism is due to the upcoming Denchun update, which promises to enhance the network’s efficiency and scalability.

The industry’s bullish stance on an Ether ETF also influences the discourse around Ethereum. Recent reports by Coinbase and Bernstein also highlighted the role ETFs could play in mainstreaming Ethereum investments.

Keyrock’s Kevin de Patoul said, “Ether outperformed traditional assets like Gold and the Dow Jones Industrial Average in 2023, alongside Bitcoin, demonstrating its potential as an exciting and well-performing asset that institutions and investors alike deserve easy access to in the form of an ETF.”

Patoul also called the SEC’s lack of clear guidance on Ethereum’s classification a ‘wrong approach.’

The executive also stressed the need for regulatory clarity, as it affects not only the approval of an Ether ETF but also the broader institutional adoption of Ethereum.

Meanwhile, the rising level of ETH staked is also a positive for the Ethereum price.

Whale Accumulates 54,721 ETH

The market has been speculating around a colossal Ethereum purchase of 54,721 ETH. An on-chain analysis by Lookonchain traced back to transactions on Binance and decentralized exchange (DEX).

Lookonchain hints at a connection between the purchase and wallets associated with Tron founder Justin Sun.

The large purchase highlights accumulation, but Ethereum’s exchange inflow and outflow in the last seven days have balanced out. As per  IntoTheBlock, $10.23b has been transferred into exchange wallets, representing liquidity entering the market. On the contrary, $10.96 billion has been withdrawn from exchange wallets in one week.

Crypto Market Implications

Ethereum’s journey towards $3000 and beyond is built on optimism. The Denchun update and the potential approval of an Ether ETF represent critical developments.

 Meanwhile, there is growing recognition of Ethereum’s value proposition, as can be seen by institutional action. Ethereum will likely play a central role in the next few months, and clarity on its regulatory status could be an interesting development.

Was this Article helpful? Yes No