- Ethereum has emerged as a top gainer in the wake of the ETF approval
- ETH has entered the oversold zone as its bull trend continues
Following the SEC’s approval of spot Bitcoin ETFs, Ethereum has emerged as the most significant beneficiary. Despite recording a series of downward trends in the preceding days, Ethereum regained its stability soon to register significant price appreciation just before the spot ETF approval.
Ethereum sees a bullish trend
Following the flash crash on 3 January, Ethereum faced challenges in recovering, dropping to the $2,200-price range. However, as news of the Bitcoin ETF approval circulated, Ethereum’s price rebounded. On the daily timeframe chart, a noticeable uptrend began on 8 January, resulting in a 4.95% hike, pushing the price beyond $2,300.
Source: Trading View
Furthermore, on the day of the ETF announcement, Ethereum went over $2,500, underlining a more than 10% increase. Comparatively, Bitcoin, with its ETF approval, noted a hike of less than 2%. This suggested that the impact on ETH’s value was comparatively more positive.
At the time of writing, Ethereum was trading above $2,600. Additionally, the Relative Strength Index (RSI) highlighted an oversold condition, with the RSI line slightly above 70 too.
Volume peaks to highest level in months
An analysis of Ethereum’s volume over the past few days revealed an uptrend. The volume began its hike around 9 January, touching a peak on 11 January. On this day, the volume surged to over $31 billion, marking the highest level observed in over five months. At press time too, the volume remained high and was over $19 billion.
This trend in volume indicates high trading activity, with buyers displaying a more aggressive approach in the market.
Source: Santiment
Ethereum supply in profit goes past 86%
The price decline significantly affected Ethereum’s profitability, as shown by Santiment’s chart. However, following the subsequent price recovery, the supply in profit registered an increase. During the price downturn, the supply in profit fell to around 80%. On the contrary, it saw a notable surge soon after, climbing close to 87% on 11 January.
At the time of writing, figures for the same were around 86.2%, equivalent to over 113 million. Simultaneously, the seven-day active addresses have risen to around 2.3 million too.
Source: Santiment
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Previously, the chart had flashed a decline starting around 20 December 2023, with the number falling to around 2.1 million before the commencement of the uptrend.
