The cryptocurrency is gaining rapid institutional adoption.
The cryptocurrency market began the new week bearish, with Bitcoin, XRP, and other major cryptocurrencies currently in the red. BTC has dropped below $119k while XRP is defending the $3 support level.
However, ETH, the native coin of the Ethereum blockchain, hasn’t given up its recent gains. Ether is up by less than 1% in the last 24 hours and currently trades around $4,303 per coin.
The positive performance comes amid strong institutional adoption. Ether’s surge over the past few weeks is a result of spot ETH ETF demand. In an email to Coinjournal, XBTO’s Chief Investment Officer, Javier Rodriguez-Alarcón, stated that,
“Strong ETF inflows added fuel, with bitcoin products seeing $247 million in net inflows and ethereum products drawing $327 million over the week, helping push ETH to its highest level since December 2021. Corporate treasury demand also played a role as companies continue to add crypto to their balance sheets as a treasury reserve and a staking income source. SharpLink Gaming disclosed the purchase of 52,809 ETH in the past week, worth over $220 million, while BitMine Immersion reported holdings of more than $2.9 billion in ETH, making it the world’s third-largest treasury.”
The CPI and PPI data this week could be crucial in how the cryptocurrency market performs over the next few days. This brings two key U.S. inflation developments: the Consumer Price Index (CPI) on Tuesday, which measures household price changes, and the Producer Price Index (PPI) on Thursday, which tracks wholesale price changes for businesses. These reports are key in shaping expectations for Federal Reserve policy.
The ETH/USD 4-hour chart is bullish and efficient, suggesting that Ether could be getting ready for another leg up. The RSI of 67 and strong MACD lines show that Ether is currently bullish.
If the rally continues, Ether could extend its positive performance to take out its all-time high price of $4,891, allowing it to hit the $5k mark for the first time in its history. Analysts still expect ETH to hit the $6k level over the coming months.
