The anticipation of approval is leading to increased institutional capital inflows, with Bitcoin’s topping $1 billion in 2023.
At the same time, CME options open interest, a favorite of institutions, topped Binance for the first time on Nov. 10.
Ethereum network revenue and fees increase
The Ethereum decentralized finance (DeFi) ecosystem witnessed a boost in daily fees, growing 57.6% in seven days on Nov. 13, in tandem with Ether’s price growth. With the increase in fees, Ethereum network revenue is up 64% in the past seven days, resulting in $6.1 million in a single day on Nov. 12.
The Ethereum network’s growth has increased gas fees and turned the network deflationary again. Over the previous 30 days, Ethereum network emissions had been inflationary, but after the increase in fees and revenue, Ether turned deflationary, with its coin supply growth contracting by -0.45% in seven days.
Bitcoin price action lifts Ethereum price and sentiment
Ether broke the key $2,000 level right as Bitcoin barrelled above $36,500. Despite profit taking from both coins, the increase in trading volume has helped maintain these levels.
A constructive week in terms of volumes for both Bitcoin and Ethereum.
Although to a lesser extent, we witnessed some profit-taking again.
The elevated skew favored call spreads and diagonals.
— GravitySucks (@Gravity5ucks) November 12, 2023
With Ether price demonstrating an ability to maintain $2,000, some analysts believe the altcoin is positioned for further upside.
According to independent market analyst Michaël van de Poppe:
“Breaking above $2,150 marks the end of the bear market, as this level is comparable to the $30,000 barrier of Bitcoin.”
#Ethereum faces the final resistance.
Breaking above $2,150 marks the end of the bear market, as this level is comparable to the $30,000 barrier of #Bitcoin.
If it breaks, then we’re likely seeing a run towards $3,100-3,600. pic.twitter.com/i91ULBRtLz
— Michaël van de Poppe (@CryptoMichNL) November 13, 2023
While the current market looks healthy, macro factors like further rate hikes and potential U.S. industry crackdown may weigh on Ether’s price slightly. Factors such as a Bitcoin or Ether ETF approval, positive regulatory clarity and an easing of interest rate hikes may prove to be catalysts for price growth. Ether’s price volatility is likely to continue.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.