Ethereum (ETH) made a notable leap on the first day of the week, with an 8% increase, influenced by rising social sensitivity and optimism among investors. According to data from the crypto data and price platform CoinGecko, ETH’s price is experiencing a significant increase in the last 24 hours, reaching an intraday high of $3,722. With this rise, ETH has outperformed Bitcoin (BTC) and many other major altcoins.
High Investor Interest
The recent price movement corresponds to the highest level ETH has reached since March 16, about three weeks ago. Despite this latest fluctuation, ETH is trading approximately 9% below its 2024 peak of $4,070 and 24% below its all-time high of $4,878 recorded in 2021. In contrast, Bitcoin‘s price saw a smaller percentage increase of 3% during the same period and is trading at $70,753 at the time of writing.
The momentum behind the price increase of the altcoin king is based on various factors, including strong social and market activity, as highlighted by the social intelligence firm Lunar Crush. According to the company’s analysis, social activity surrounding Ethereum continues to show a significant upward trend, along with strong price movement and high trading volume.
Furthermore, ETH shows signs of maintaining an upward trend for the rest of the month, according to signals from the derivatives markets. Data from the futures exchange Deribit indicates high amounts of open interest (OI) at significant strike prices, including $4,000, $3,700, and $5,000, which points to optimism among investors regarding ETH’s price outlook.
The on-chain analysis firm Santiment recently reported a notable increase in the performance of ERC-20 altcoins, with these assets outperforming the average of the cryptocurrency market. According to the data, there was an 8.1% growth in ERC-20 altcoins over the past 7 days, indicating an increased interest in Ethereum-based altcoins among investors.
Famous Figure Issues Downturn Warning
However, not all market participants are on the bullish side. Figures like crypto writer and educator Vijay Boyapati have warned against the overly optimistic expectation that Ethereum will benefit from the approval of spot ETFs in the US.
Boyapati emphasized that if the anticipated ETFs are not approved as expected and are rejected, the capital flow to the altcoin king could revert back to Bitcoin.
