Ethereum (ETH) has surged past the $4,000 mark, marking a ten-month high, following a 40% increase in the first week of December. This rise is part of a larger crypto market rally, driven by Bitcoin's new all-time highs.
Demand for Ethereum exchange-traded funds (ETFs) in the United States has been unprecedented, with a $428 million daily inflow. This interest indicates increased confidence, fueled by Donald Trump's recent election victory, which boosted the crypto market's bullish sentiment.
SEC leadership under Paul Atkins, an advocate for pro-crypto regulation, could potentially ease yield restrictions on staked Ether in ETFs, increasing their appeal. This has amplified enthusiasm for Ethereum, with the market seeing a shift towards altcoins amid Bitcoin's high price.
Ethereum's derivatives market activity has also increased, with CME Group Inc. recording high open interest in Ether futures contracts, reflecting a preference among US institutions for regulated investment options.
The ongoing "Altcoin Season" is highlighted by the Altcoin Index reaching 100, signifying a strong market sentiment, despite Bitcoin's recent volatility. The outlook for Ethereum remains positive, with expectations for both institutional and retail investments potentially driving prices beyond previous peaks.
