Ethereum has reached its highest level of the year, exciting investors and analysts. The price of Ethereum, which has surpassed $2,000, has increased due to a combination of factors such as the intensification of deflationary effects and the narrowing of the premium gap in Grayscale Ethereum Trust. A cryptocurrency analyst stated that the average unit price of $2,000, which is seen as an important support level for investors, was surpassed a few days ago and long-term investors are now in profit.
The majority of long-term investors being in profit can create a solid foundation for further growth of Ethereum. The price increase of Ethereum may be gaining momentum with the strengthening of deflationary trend. Following BlackRock’s ETF spot application to the SEC, there has been an increase in ETH transactions and a sharp decrease in total ETH supply. Since the announcement, the total supply has decreased by 82,861 ETH.
The premium gap in Grayscale Ethereum Trust is narrowing with institutional purchases after it dropped to -59.49% in December 2022. It is observed that institutional investors are buying a significant amount of the product and further increasing the price of ETH. The launch of cryptocurrency trading services by Brazil’s largest bank, Itau Unibanco, is expected to increase institutional participation in Ethereum.
Initially offering Bitcoin and Ethereum, the bank aims to add other cryptocurrencies to its portfolio as the country’s cryptocurrency regulation evolves. This move by Itau enables it to compete with local players and global giants.