Ethereum’s price experienced a 3% increase, trading above $2,600, driven by several key developments within the market. The boost followed the CBOE BZX exchange’s application to introduce staking to the 21Shares Core Ethereum ETF, potentially marking a groundbreaking move in the US ETF market. If approved, it would be the first ETF allowing staking, providing a new utility layer for institutional investors and potentially enhancing mainstream adoption.
Additionally, the price rise was supported by the liquidation of short positions in the ETH futures market, where $37 million in short positions were liquidated compared to $29 million in long liquidations. This imbalance suggests a short squeeze phenomenon, where those betting on a price decline are forced to buy back at higher prices, thus pushing the price upward.
Furthermore, from a technical standpoint, Ether is in oversold territory with an RSI dropping to levels that have historically heralded price rebounds. Analysts predict a potential recovery to $3,000, driven by both market dynamics and technical indicators pointing to buying opportunities as sentiment turns negative.
The developments collectively contribute to a broader sentiment of optimism surrounding Ethereum, as investors see these moves as paving the way for increased demand and institutional involvement, potentially exerting upward pressure on the asset’s price.
