Ethereum (ETH) price has risen to $3,900, attracting market interest. This article examines the contributing factors and potential outlook for the cryptocurrency.
Factors Contributing to ETH's Rise
The rise of ETH has been driven by several factors, including increased trading volumes and investor preferences. For instance, Ethereum has shown better performance compared to Solana (SOL) in terms of fund inflows, reflected in a decline of the Hot Capital Ratio to 0.045.
Investor Interest and Trading Volumes
Institutional investors continue to actively acquire ETH tokens. According to data from Lookonchain, an unknown institution created a new wallet and purchased 10,396 ETH worth $40.6 million. Additionally, recently several wallets were created to purchase 171,015 ETH valued at $667 million.
Outlook for Further Growth
ETH's price is nearing the resistance level at $4,000, and market participants are keenly observing whether the asset can sustain its upward movement. If successful, further growth toward $4,074 and higher is anticipated.
The growing interest from institutional investors and improved market conditions contribute to the recovery of Ethereum's price. Maintaining the upward trend could lead to new records.
