Here Are 3 Reasons Behind ETH’s Surge Past $2.6K
The second-largest cryptocurrency by market capitalization has maintained a price range between $2,500 and $2,600 for over a month. However, recent data shows that the asset has surpassed the $2,600 price mark, hovering around $2,650.
Several factors have contributed to ETH’s price stabilization around this level over the past few weeks. This article highlights three key reasons.
Why the ETH Increase?
One potential factor is the continuous inflow to Ether-focused exchange-traded funds (ETFs). Public data indicate that most Ethereum ETF issuers, including BlackRock and Fidelity, have recorded steady inflows for consecutive days. This metric indicates that many investors are interested in this investment vehicle, which offers exposure to the price movement of the second-largest cryptocurrency.
Another driver likely propelling ETH’s price increase above $2,600 is a new trend among corporations establishing an ETH treasury. In recent months, companies such as BioNexus Gene Labs and SharpLink Gaming have raised substantial funds to accumulate ETH as a treasury asset. This steady demand for the digital asset has likely helped its price remain at its current level.
Analysts pinpointed the third factor behind ETH’s price increase – a reduction in the amount of ETH held in centralized exchanges (CEXs). Typically, whenever most ETH holders send their holdings to a CEX, it indicates that they are likely about to sell. Conversely, keeping ETH in a non-custodial wallet suggests that most users intend to maintain their positions for the long term.
How High Can ETH Go?
This year has seen some of the biggest cryptocurrencies record their highest market prices yet. However, ETH falls among those with struggling market metrics. It is no news that ETH has failed to unlock a new all-time high (ATH). Recall that it attained a peak value of $4,891 in November 2021.
The nearest it has come to its peak value is $4,000, recorded in December 2024. Around that time, most top crypto assets soared in market value as the pro-crypto American politician, Donald Trump, won the presidential election.
Although the second-leading crypto has dropped in valuation to around $2,650 at the time of writing, its price stabilization is worth considering as it could become a support level for the digital asset. If the asset maintains this price level for an extended period, we could see ETH reclaim higher price levels and reach its current all-time high.
The post Here Are 3 Reasons Behind ETH’s Surge Past $2.6K appeared first on CryptoPotato.
