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Global markets demonstrated increased risk appetite on Friday, with cryptocurrencies rising. The total crypto market cap increased by 3%, driven by significant gains in altcoins.
Around press time, Ethereum (ETH) gained nearly 4% in the last 24 hours to reach $4,002, touching the much-watched psychological level for the first time since December. Ethereum's price has risen 163% since April, when it found support at $1,383, driven by increased staking and treasury holdings by companies.
Ethereum further got a positive fundamental boost as the Securities and Exchange Commission’s Division of Corporation Finance indicated that certain liquid staking activities and "staking receipt tokens" do not constitute securities under the 1933 Securities Act, provided they meet a strict set of assumptions.
Ethereum network transactions have subsequently risen to an all time high as staked Ethereum rose to a record high, boosted by recent regulatory optimism surrounding liquid staking. The seven-day average of daily transactions on the Ethereum blockchain reached 1.74 million earlier this week, surpassing an earlier record of 1.65 million set on May 12, 2021.
Ethereum to melt faces
As Ethereum makes its next big push on the market, Glassnode cofounders who go by "Negentropic" on X have issued a breathtaking prediction for the second largest cryptocurrency.
According to Negentropic, Ethereum's next move is underway and will melt faces: "eth with a small breather, but the next move is loading and will melt faces."
With Ethereum now trading above $4,000 again, eyes are now on the cryptocurrency to see if it will reclaim the all-time high of $4,891 reached in November 2021.
On Ethereum's path to the all-time high is the $4,500 level, which coincides with the Active Realized Price band and marks a key upside threshold for the current rally. This level acted as resistance in March 2024 and during the 2020-2021 cycle. A decisive break above $4,000 and $4,500 will be watched to see if Ethereum sustains its bullish momentum.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team