Ethereum opened today with markets slightly lower, but its price structure remains firm near $2,000, fueled by increasing institutional interest in endorsing spot crypto ETFs.
On-chain data shows the resilience of Ether, with its crypto network returning record high fees, which on the one hand leads to an increase in validator yields, and on the other hand causes a net decrease in crypto emissions.
What’s in store for Ethereum between now and the end of the year?
We see that in this article.
Ethereum price and excitement over potential spot ETF for crypto
Market enthusiasm for potential Spot ETFs in the United States, the price of the cryptocurrency Ethereum supports, which despite opening the day with a fall, manages to stay close today the key $2000 level.
From mid-October onwards, ether showed its muscles, reaching a local high in April in the 2140 area, but still failed to definitively break the level.
Fomo in the markets was felt on November 1 when the Securities and Exchange Commission recognized Grayscale request An investment to convert his trust into a security that can be traded on the stock exchange Nasdaq.
Gary Gensler and his team were forced to express Michael Sonnenshein’s claims because of a direct court order that previously recognized the asset manager’s right to request conversion of his fund.
Traders then provided strong support on November 9thwhen the property manager Black rock followed in Grayscale’s footsteps by putting further pressure on the SEC and causing a a current 12% increase in the price of Ethereum.
Positive market confidence means that many expect the US federal market watchdog to comply with these companies’ demands in early 2024, which will trigger the start of the real bull run cryptocurrency.
The general outlook for the second coin market by capitalization appears to be broadly positive, visually poised to support a return to the $2,500 area where Ethereum hasn’t stepped since May 2022.
On the market derivatives in the last 24 hours, the amount of call options exceeded the total put options, while open interest continues to grow unabated, reaching the highest volumes ever.
The most traded business centers in this context are those of Deribit, OKX, CME and Bybit with finally Binance closing the ranking, unable to make a place for itself in relation to other competitors.
Looking at Ethereum chart we can see prices staying above the 50 EMA on the 4-hour time frame, with the $2000 threshold that acts as a divider between the bullish and bearish scenarios in the short term.
It will be crucial to close the week above this psychological figure to make room for a further move for the cryptocurrency that could finally reach new yearly highs.
At the moment, however, despite the positive expectations of crypto market participants, there is no confirmation of all this and the bullish continuation of Ethereum’s price structure remains only a hope.
To make pay special attention to the $1,900 level since, in the event of a bearish breakout, it could cause a serious slide to the decentralized currency.
Ethereum on-chain analysis: all the factors to analyze
On-chain data is encouraging for Ethereum and hold high expectations of a positive price forecast for the cryptocurrency, which is currently struggling to maintain a price of $2,000 per coin.
After the prices started to rise from mid-October onwards, it started and commissions registered on the cryptographic network experienced a spike, and the entire decentralized ecosystem experienced an increase in the cost of using the network overnight.
Especially at this moment commissions are approx 28 gweiand they require more or less $20 to trade and $35 to sell NFTs. Until a few days ago, the values were at least 3 times lower.
Given the situation, and fees from rollup that rely on Ethereum have seen a clear increase: networks ZkSync, StarknetArbitrum and Base are the ones where, according to L2fees data, the biggest increases were recorded.
All this, although the user experience can be viewed negatively, represents a a cure for the Ethereum ecosystemespecially for its validators who can count on increasing their profits.
Speaking of validators, we can see how the overall encouraging situation in the cryptocurrency has pushed network stakeholders to reach a new all-time high of ETH stored on the Beacon Chain, equal to 28.3 million coins.
Returning to the discussion of fees, let’s look at how the disproportionate increase of the latter has resulted ether to return to a state of deflationwith the network burning more coins than it puts into circulation each day.
From EIP-1559update that required the burning of some of the commissions recorded on the network, ETH remained stable near the 0 level, with no particular increase in circulating supply or significant reductions.
But the situation seems to have gotten more interesting in recent weeks, with the network even going so far as to observe negative net emissions of over 3000 ETH in one day.
In this context, the second crypto in the market looks more and more Bitcoinwhich, to stay on the topic of deflation, is almost ready for its fourth halving which will reduce miners’ mining rewards by 50%.
If this situation were to remain unchanged for the next few months, we could easily see a The price of Ethereum has risen compared to current levelswhereupon the $2,500 quota was finally abolished, followed by the $3,000 quota.