- The potential of Ethereum’s ETF approval has grown steadily.
- Short term holders outnumbered long term holders as ETH’s MVRV ratio rose.
Ethereum’s [ETH] connection with the recent Bitcoin [BTC] ETF developments sparked interest and anticipation in the crypto sphere. While Ethereum already experienced positive effects from Bitcoin’s ETF journey, there’s a growing sense that this digital currency had a lot to gain.
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Some more good news
One significant development was the U.S. SEC’s recognition of Grayscale’s Ethereum ETF filing on 23 October, which could lead to the conversion of ETHE into an ETF.
Notably, Grayscale and NYSE Arca, in a joint effort, initiated the process of transforming their Ethereum Trust Fund (ETHE) into an Ethereum spot ETF.
SEC has acknowledged Grayscale’s spot ether ETF filing…
This would be conversion of $ETHE into ETF. pic.twitter.com/JMmutgbakZ
— Nate Geraci (@NateGeraci) October 23, 2023
ETH’s price movement in the last 24 hours showed an 8% increase until press time. This price surge indicated a strong market response, potentially influenced by the ETF chatter.
Network Growth was another aspect that drew attention. Ethereum’s Network Growth was on the rise, signifying increased activity and participation within the ecosystem. This positive momentum could further boost Ethereum’s position in the market.
Accompanying this surge in growth was a surge in Velocity, which measures how quickly tokens change hands within a network. The uptick in Velocity suggested more frequent trading and transactions, adding to the vibrancy of the network.
Source: Santiment
However, along with this, Ethereum’s MVRV rose as well. This suggested that a significant portion of ETH holders were in a profitable position at press time, which could result in increased selling pressure.
The Long/Short Difference could also play a key role in ETH’s future. This is often associated with an increase in the number of new addresses, which are more likely to indulge in profit-taking as prices surge, thus impacting market dynamics.
Source: Santiment
Realistic or not, here’s ETH’s market cap in BTC’s terms
Beyond the price and trading statistics, it’s vital to consider the state of the Ethereum network itself. Gas Used, a measure of computational work performed on the network, remained consistent, reflecting Ethereum’s stability and utility.
Moreover, the number of NFT trades occurring on the Ethereum network surged, indicating strong interest in the NFT space.
Source: Santiment