Ethereum’s price has surpassed the $2,400 mark for the first time since May 2022, igniting investor interest in a potential Ethereum exchange-traded fund (ETF) following the approval of spot Bitcoin ETF applications. The cryptocurrency saw a 7.8% increase over the last 24 hours and an 85% rise over the past year, reaching $2,477.
The price surge came after a misinterpreted tweet from the SEC’s official account about spot Bitcoin ETF approvals, which led to increased Ethereum prices while Bitcoin faced selling pressure. This made Ethereum the only non-stablecoin in the top 10 crypto assets by market value, a position it hadn’t seen since before the Terra Luna collapse.
Layer-2 projects built on the Ethereum network, such as Mantle and Optimism, gained 9% and 15% in value, respectively. These networks operate independently but offer faster and cheaper transactions than the main Ethereum blockchain.
Crypto analysts on social media speculate that market participants are gearing up for a spot Ethereum ETF approval, with institutional investors in the U.S. already indirectly investing in Ethereum. Michaël van de Poppe, CEO and Founder of MN Trading, suggested on social media that Ethereum might receive a spot ETF.
Data from Coinglass indicates that short position liquidations in the Ethereum futures market reached $31.7 million over the past 24 hours, with the amount still rising. The SEC is expected to make decisions on all spot Bitcoin ETF applications on the night of January 11, with market participants confident of an approval following recent reports from Cboe.