Why is Ethereum Price Up Today?

By Anshuman Roy 4 Min Read
Why is Ethereum price up
Why is Ethereum price up

NOIDA (CoinChapter.com)—The Ethereum price was up more than 3.5% on July 9, riding on the hype surrounding Ethereum ETFs and bullish market sentiment. The token reclaimed the $3,000 price mark after dropping below it on July 5.

As the potential approval of spot Ethereum Exchange-Traded Funds (ETFs) looms, major asset managers have filed their amended S-1 registration statements with the Securities and Exchange Commission (SEC).

Ethereum ETF Hype Could Be Why Ethereum Price Is Up Today

Major asset managers, including VanEck, Grayscale, Fidelity, BlackRock, 21Shares, Franklin Templeton, and Bitwise, submitted their amended S-1 registration statements to the Securities and Exchange Commission. The response to the SEC’s July 8 deadline marks a significant step toward the anticipated launch of ETH ETFs.

Market predictions state that the SEC could approve these amended drafts within two weeks, following the earlier approval of issuers’ spot ETH ETF 19b-4 applications on May 23. The final step is the greenlighting of their S-1 filings before trading begins.

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This potential approval has boosted market sentiment, as the introduction of spot ETH ETFs promises to attract institutional investors, enhance liquidity, and drive up Ethereum’s market value. This development partly explains why the Ethereum price is up today.

why is Ethereum price up today
Firms are submitting their amended filings for spot ETH ETF.

Moreover, VanEck’s official S-1 filing for its spot Ethereum ETF underscores the industry’s readiness to meet growing crypto investment demand. Bloomberg analyst Eric Balchunas noted that similar filings are expected, with predictions of the Ethereum investment product going live within two weeks.

The combination of regulatory advancements, strategic asset movements, and ecosystem enhancements suggests a promising near-term outlook for ETH.

Bullish Signals for Ethereum

The latest on-chain metrics reveal bullish signals for Ethereum (ETH).

why is Ethereum price up today
Ethereum supply help by addresses with different balances. Source: Glassnode

Data from Glassnode revealed addresses holding 1,000-10,000 ETH have been increasing their holdings. This accumulation by larger holders indicates strong confidence in ETH’s future performance and suggests reduced selling pressure from significant holders.

Conversely, addresses with 10-100 ETH and 100-1,000 ETH have shown a decline in their holdings. This trend might indicate that smaller and mid-sized holders are consolidating or transferring their assets, potentially in anticipation of favorable market movements.

why is Ethereum price up today
Ethereum exchange netflow.

Additionally, the net transfer volume of ETH to and from exchanges further supports a bullish outlook. The significant red bars represent substantial outflows of ETH from exchanges, signaling that more ETH is being withdrawn than deposited.

The pattern, particularly evident over the past few months, suggests that investors are moving ETH to private wallets for long-term holding rather than keeping it on exchanges for immediate selling.

Despite recent price drops, the persistent outflows from exchanges highlight investor confidence. The continuous withdrawal of ETH during price declines indicates that investors are buying the dip and storing assets off exchanges.

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