Bitcoin (BTC) has shown resilience, maintaining a steady position above $109,500 during the Asian morning hours on Wednesday. This stability follows a correction phase last week, where profit-taking was prevalent among investors. However, the spotlight has now shifted towards Ethereum (ETH), with analysts suggesting that we may witness increased volatility in the upcoming weeks.
In recent developments, ETH surged by 5% within a 24-hour window, making it the standout performer among the leading cryptocurrencies. Traders have reported unprecedented trading volumes for various ETH-based products across several exchanges, highlighting renewed interest in Ethereum.
According to Jeff Mei, COO at BTSE, “Investors are finally recognizing the compelling investment opportunity that Ethereum presents. It’s still trading well below its all-time highs, while bitcoin is already near its ATH levels.” Mei emphasized the expanding role of Ethereum in the tokenization of real-world assets, including stocks, money-market funds, and U.S. Treasuries. He expressed confidence that Ethereum is poised to reach or even exceed its previous all-time price by the year’s end.
The growth of Ether ETFs further underscores the positive sentiment surrounding Ethereum, with more than $800 million being invested in the past two weeks, significantly outpacing Bitcoin’s sub-$400 million inflow, as indicated by SoSoValue data. This trend has resulted in the largest discrepancy in implied volatility between Ether and Bitcoin since late 2022, signaling traders’ expectations for larger price movements in the near future.
Additionally, open interest in ether perpetuals on the Kraken exchange reached an all-time high of 30,000 ETH this week. Alexia Theodorou, Kraken’s Head of Derivatives, noted this uptick in speculative activity surrounding Ethereum, although she cautioned that the market lacks a definitive directional consensus, given that the long/short ratio remains significantly below January’s levels.
Meanwhile, other cryptocurrencies such as Solana (SOL) and Cardano (ADA) have also experienced positive price movements, gaining 4.7% and 3.3%, respectively. XRP has risen 2% to $2.30, and Dogecoin (DOGE) has rebounded by 3.7%, recovering from last week’s losses.
As traders navigate this rapidly evolving landscape, the upcoming U.S. Consumer Price Index (CPI) data release on Wednesday is generating considerable anticipation. The results could influence Federal Reserve rate expectations and shape risk sentiment leading into next week’s central bank meeting.
