Traders are positioning for a surge in the ETH price in the medium term as there are now more addresses than ever holding Ethereum, according to Glassnode.
The second-largest cryptocurrency, Ethereum, slipped nearly 14%, hitting lows around $3,915 following global market sell-off on Nov. 26.
First, there are more addresses than ever holding Ethereum. The number of non-zero Ethereum addresses just hit an all-time high of 68,933,212 as per data from on-chain analytics company Glassnode.
Growth in non-zero Ethereum addresses seems plausible as crypto adoption becomes increasingly mainstream, with traders flocking to the NFT and DeFi space.
Second, market participants remain optimistic that the U.S. SEC might soon give the go-ahead for an Ethereum based exchange-traded fund. It comes as Kelly Strategic Management, an investment firm headed by Kevin Kelly, files for approval in the U.S. of an exchange-traded fund (ETF) tied to Ether futures, just three months after ProShares and VanEck pulled similar filings.
A Security and Exchange Commission (SEC) approval for an Ethereum based exchange-traded fund might impact the Ethereum price positively, just like Bitcoin rose to all-time highs of $69,000 after the first Bitcoin ETF futures launched.
Presently, Ethereum is gaining ground against Bitcoin, suggesting a price breakout may be in the offing. Ethereum was trading at $4,448 as of press time, while ETH dominance representing Ethereum's share of overall industry market capitalization stood at 20.4%.