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“Given that ETH has lagged behind BTC and SOL in the current rally, its recent strength supports the case for it to retest its all-time high,” QCP Capital said.
By Shaurya Malwa|Edited by Sheldon Reback
Nov 29, 2024, 10:18 a.m.
What to know:
- U.S.-listed spot ether ETFs attracted over $220 million in the past four days of active trading.
- Analysts suggest ETH could retest its all-time high due to this momentum, supported by capital rotation from bitcoin into ETH.
- Ethereum has recorded a surge in on-chain activity and open interest in ether futures has risen.
A streak of inflows into U.S.-listed spot ether (ETH) exchange-traded funds (ETFs), rising activity on the Ethereum blockchain and increased institutional trading interest could help the second-largest cryptocurrency by market cap surpass its three-year-old price record in the coming months.
“ETH spot ETFs continue to record strong net inflows, totaling $90.1 million yesterday and marking a 4-day winning streak,” QCP Capital said in a note referring to Wednesday trading. “Despite this week’s retracement, these healthy inflows highlight the market’s growing optimism. ETH was the main outperformer Wednesday as it rallied 11.65% to a high of 3,688. This is aligned with our thesis of capital rotation from BTC to ETH.”
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The ether ETFs attracted over $220 million in the Nov. 22-27 period, data shows, the second-longest streak of inflows since they went live in July. That has helped bring cumulative flows to a positive $240 million.
“Given that ETH has lagged behind BTC and SOL in the current rally, its recent strength supports the case for it to retest its all-time high of 4,868 (+35.4%),” QCP said.
Fundamental factors and money flows are further boosting ether’s growth prospects.
A CoinDesk analysis earlier this week noted that cumulative open interest in perpetual and standard futures contracts has surged to a record 6.32 million ETH, worth over $27 billion.
Activity in the ether options market listed on Deribit is also picking up, with over 2 million contracts active or open at press time, the most since late June.
Other data shows a jump in revenue, fees, new wallets and Ethereum blockchain volumes, with the past month registering elevated levels of activity compared with the period from May to September.
Stablecoin data further shows that Ethereum has more USDT hosted than Tron, with $60.3 billion on Ethereum versus $57.94 billion on Tron, the first time that’s happened since June 2022.
Shaurya is the Co-Leader of the CoinDesk tokens and data team in Asia with a focus on crypto derivatives, DeFi, market microstructure, and protocol analysis.
Shaurya holds over $1,000 in BTC, ETH, SOL, AVAX, SUSHI, CRV, NEAR, YFI, YFII, SHIB, DOGE, USDT, USDC, BNB, MANA, MLN, LINK, XMR, ALGO, VET, CAKE, AAVE, COMP, ROOK, TRX, SNX, RUNE, FTM, ZIL, KSM, ENJ, CKB, JOE, GHST, PERP, BTRFLY, OHM,
BANANA, ROME, BURGER, SPIRIT, and ORCA.
He provides over $1,000 to liquidity pools on Compound, Curve, SushiSwap, PancakeSwap, BurgerSwap, Orca, AnySwap, SpiritSwap, Rook Protocol, Yearn Finance, Synthetix, Harvest, Redacted Cartel, OlympusDAO, Rome, Trader Joe, and SUN.
