Ethereum’s price rose by 2% within 24 hours on January 16, a day marked by a peak in transaction volume within the Ethereum ecosystem. The momentum in ETH price is largely attributed to the speculation of Ethereum-based ETFs following the approval of multiple spot Bitcoin ETF applications. The question arises, what is expected for Ethereum moving forward?
Data from The Block’s Data Dashboard indicates that the seven-day moving average of daily transactions on the Ethereum network increased from 1.1 million to 1.3 million last week. This level of activity has not been seen since November 2021, when Ethereum’s price surpassed $4,600, marking an all-time high.
Additionally, the transaction volume on the Ethereum network has also increased. Economic volume on the Ethereum ecosystem went from $2.8 billion to over $4 billion last week, suggesting that users are capitalizing on recent declines in transaction fees.
Since the U.S. Securities and Exchange Commission approved several spot Bitcoin ETFs last week, Ethereum’s price has managed to stay above the $2,500 mark, trading at $2,559 at the time of writing. Investors continue to monitor significant developments on the Ethereum front related to ETF speculations.
Furthermore, data from The Block’s Data Dashboard shows that the supply of Ethereum in profit is currently at 91.5%, a significant rate not seen since 2021. This high supply in profit could prompt investors to sell, potentially affecting Ethereum’s price in the short term. In the last 24 hours, volatility in Ethereum’s price led to approximately $20 million in liquidations on centralized exchanges, with the majority being long positions worth $11 million.