The largest altcoin, Ethereum (ETH), has upset its investors in recent years with its weak performance, but has made a big move in recent weeks.
ETH, which has increased by approximately 5% in the last 24 hours, has approached $2,800.
While Ethereum provided some relief to its investors with its rise, it also left Bitcoin behind.
According to Coinglass data, the trading volume of Ethereum derivatives increased by 38% in 24 hours, reaching over $110 billion.
Analysts said the increase was driven by continued strong inflows into spot Ethereum ETFs, renewed interest in DeFi, and positive news from the SEC.
This data signals increasing institutional participation for Ethereum, with its $110 billion trading volume surpassing that of Bitcoin derivatives, which had $84.72 billion.
While this increase in Ethereum derivatives trading volume comes along with the increase in ETH price, BTC Markets analyst Rachael Lucas said that ETH’s transaction increase reflects structural growth and increasing institutional interest.
“Ethereum’s growth in transaction volume is not a momentary one; it reflects structural growth, institutional validation, and real utility,”
“ETH is no longer just the second largest crypto by market cap, it is becoming the cornerstone of the digital asset economy.”
Lucas, who also explained his prediction about the Ethereum price, said that there is an increase on the horizon, but for now, the $2,800 support and $3,600 resistance are critical for the new ATH process.
“In the short term, ETH is riding a bullish wave. Price action is bullish, but we are also eyeing key levels – resistance at $3,600, support around $2,800.
“If staking-supported ETFs are approved later this year, that could push ETH into the $5,500-$6,700 range by December.”
*This is not investment advice.