Ethereum Surges 10% as Grayscale ETF Outflows Slow Down

Ethereum gains momentum, surpassing $2,700 amid a recovering crypto market and easing selling pressure.

Ethereum's price surged by 10% on Friday, hitting $2,700, as the broader crypto market bounced back from Monday's sharp downturn. The rise in Ethereum's value outpaced other major cryptocurrencies like Bitcoin and Solana.

Data from CoinGecko shows Ethereum's price is currently around $2,664, reflecting a 9.6% increase in the past 24 hours, though it remains over 15% down for the week. Trading volume rose by 5%, while open interest jumped by 15%, signaling growing investor confidence. This shift in sentiment aligns with the Crypto Fear & Greed Index returning to a "neutral" stance, a significant improvement from the extreme fear levels earlier in the week.

A key factor in Ethereum's resurgence is the slowdown in asset liquidation by large holders, including major players like Jump Crypto and Paradigm. Before the market turmoil on Monday, Jump had moved significant amounts of its $243 million crypto holdings, including a considerable amount of Ethereum, to exchanges. As of now, Jump Trading's Ethereum balance has stabilized at around $15 million, marking a $1 million increase over the past day.

Financial analysts had noted Ethereum's underperformance in the current market cycle, with the ETH-to-BTC conversion ratio hovering around 0.043, just above its yearly low of 0.041. However, the recent launch of U.S. spot Ethereum ETFs is expected to be bullish for the cryptocurrency, providing institutional investors with a regulated avenue to gain exposure to Ethereum.

Despite this, the momentum for Ethereum's price recovery may be tempered by investors shifting their existing Ethereum Trust holdings into these new ETFs. On Thursday, Ethereum ETFs saw net outflows of $2.9 million, according to Farside Investors. Grayscale's Ethereum Trust also experienced slower outflows, totaling $19.8 million, while Fidelity's FETH recorded its first day of outflows since its launch.

**DALL-E Prompt:** Create a wide image depicting Ethereum's price surge with a chart showing the upward trend, and incorporate elements like bullish candles, rising trading volume, and a calm market environment to reflect the easing of outflows.

photo source / Blockonome