The price rise of Ethereum is accompanied by several factors, including changes in the regulatory environment, active purchases by major investors, and positive technical indicators.
Regulatory Initiatives Strengthening
On September 11, SEC Chairman Paul Atkins reiterated his support for clearer regulations for the crypto market, asserting that many tokens should not fall under security laws. Additionally, regulatory bodies in Hong Kong are moving forward with drafts that would reduce capital requirements for digital assets like ETH and BTC. If these rules are implemented, banks would need to allocate 50% less capital for Ethereum compared to traditional assets, easing institutional investors' entry into the ETH market.
Massive Purchases by Whales
On September 12, a whale purchased 32,368 ETH (approximately $118 million) in a single transaction, part of a broader trend of accumulation. Since August, 138,000 ETH ($503 million) have been amassed. During this period, the total ETH balance on exchanges decreased to 9.8 million, the lowest in seven months. This scenario reduces selling-side liquidity, potentially paving the way for price surges as observed previously.
Technical Indicators Support the Rise
Ethereum surpassing the critical resistance level of $4,634 has increased optimism among market players. As the price remains above significant support levels, technical indicators like MACD and RSI continue to emit bullish signals. Ethereum’s weekly close above $4,700 is interpreted as a positive sign for investors.
The overall dynamic changes, including easing regulatory pressures, whale activity, and positive technical signals, may pave the way for Ethereum to reach new heights.
