Ethereum has joined the recent surge in prices. Investors are rallying in anticipation of potential approval for a <a href="https://en.coin-turk.com/bitcoin-eyes-30500-amid-diverse-market-movements-will-the-rally-continue/”>Bitcoin ETF in the US, and this optimism is positively impacting many altcoins in the cryptocurrency market. After a nearly 9% increase earlier this week, the ETH price has stabilized around the psychological resistance level of $1,800.
SEC and ETF Applications
The US Securities and Exchange Commission (SEC) has accepted Grayscale Investment‘s application to convert their Ethereum investment product into an ETF. This decision, made on October 24, is in response to a direct court order requiring the SEC to review Grayscale’s pending ETF applications.
While the SEC has not yet approved a spot crypto ETF application, they have approved applications related to Bitcoin and Ethereum futures contracts. Despite these developments, it is expected that the SEC will approve a spot Bitcoin ETF in early 2024.
ETH Whales Setting Records
The increase in ETF rumors coincides with a rise in whale activity in the Ethereum ecosystem. According to data from blockchain analytics platform Santiment, the number of whale transactions exceeding $100,000 has increased by 15% in just one week, reaching its highest level since June. Similar growth has been observed in Bitcoin, Cardano, and DAI whale transactions.
The fact that whale accumulations are accompanying the increase in Ethereum’s price indicates that most whales are supporting the Ethereum rally. Other data suggests that whales are withdrawing ETH from exchanges, implying that they have the lowest likelihood of swapping the cryptocurrency for other assets in the future.
Increase in Short Position Liquidations
The price increase in Ethereum coincided with over $70 million in short liquidations in Ethereum futures contracts. Meanwhile, only $41 million worth of long positions were liquidated during the same period.
Short-selling investors were forced to buy back their futures contracts at any price to close their positions. This resulted in the ETH price surpassing $1,850.
