Ethereum is flashing strong signals of a significant rebound as ETF volume continues to rise. On February 3, Ethereum ETFs recorded a trading volume of $1.5 billion
After a rough start to the year, the price of Ethereum (ETH) has finally begun to recover, much to the delight of investors. This recovery is being driven by a number of factors, including increased interest from large investors and a surge in ETF volumes.
On February 3, Ethereum ETFs recorded a trading volume of $1.5 billion, which is over 20% higher than their previous record of $1.2 billion set in December. This is also the highest trading volume since their launch on July 23, when they hit $1.11 billion.
BlackRock's ETHA product had the highest trading volume at $736 million, followed by Grayscale's converted ETHE fund at $415 million, and Fidelity's FETH at $155 million, showing their market shares by these amounts. In total, the trading volume for all U.S. spot Ethereum ETFs is now close to $22 billion.
As ETF trading has picked up, so has the volume of large trades. Recent data from IntoTheBlock shows that big investors, or “whales,” have been showing more interest in Ethereum lately. This uptick in interest comes after the market crash, which allowed these large players to buy Ethereum at lower prices.
The volume of large trades jumped from $4.59 billion on February 1 to $23.6 billion by February 3. With whales now focusing more on Ethereum as its price begins to recover, we might see a significant increase in upward swings.
Moreover, Ethereum has increased its network's capacity for processing transactions, making this the first change since it switched to a proof-of-stake system in 2022. This adjustment will allow for faster and cheaper transactions on the Ethereum blockchain.
As ETH continues to rise in price, it faces strong resistance at $3K, challenging investors to push it higher. However, if it manages to stay above this level, we could see a rally toward January's high of $3,500 or even up to $4,000.
On the other hand, if the price continues to hold below the EMA20 line on the 1-hour chart, sellers might push it down to about $2,100 to test buyers' patience. However, the Relative Strength Index (RSI) is now heading toward the midline, suggesting there might be an increase in price soon due to continued buying interest.
