Ethereum, the second-largest cryptocurrency, has seen a strong rebound from the $3,000 low reached on March 21, rising 15% since then.
At the time of writing, ETH was worth $3,501.80 with a market capitalization of $419,615,771,672.
The strong recovery of Ethereum was reflected in the number of transactions involving ETH, which showed a sharp increase. Such conclusions were made by renowned crypto analyst Ali Martinez, who noted that the number of whale transactions in ETH has been on the rise in recent weeks.
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Ali Martinez explained that the increase in transactions is a bullish indicator that predicts Ethereum's imminent upward rally.
Currently, the price of ETH is trading in a tight range, which suggests the possibility of a breakout above $4,000. According to previous expert predictions, Ethereum should reach $4,000 soon and cross the $5,000 mark by the end of the year, according to CoinGape.
Interest in ETH is also fueled by expectations of the Securities and Exchange Commission's (SEC) decision on spot Ethereum ETFs, although experts express directly opposing opinions. Some see the SEC's indecision as a sign of rejection, while others, including Bitwise, remain optimistic and expect SEC approval in May 2024.
Hopes for Ethereum ETF approval have grown as the SEC has delved deeper into the issue of Ethereum's security status. Blockchain company Consensys is pushing for SEC approval of the Ethereum ETF, highlighting Ethereum's robust security measures. In an attempt to make a case for ETF approval, Consensys sent a letter to the SEC explaining the Ethereum Proof of Stake (PoS) consensus mechanism and emphasizing Ethereum's strong security measures.
Among other things, the letter highlights Ethereum's resistance to attack, which surpasses Bitcoin in terms of hacking costs, making it much more difficult for attackers to attempt it.
The SEC is considering appeals from Consensys and other petitioners, and the decision could lead to a sharp rise in Ethereum and impact the cryptocurrency market as a whole.