Investor interest in leveraged Ether trading instruments is growing, potentially pushing the cryptocurrency's price above the $4,000 psychological mark.
Rise in Leveraged Ether ETF Demand
Since November 5, demand for VolatilityShares 2x leveraged Ether ETF has risen over 160%, according to K33 Research's head of research, Vetle Lunde, indicating that VolatilityShares now holds more than half of CME’s Ether open interest.
Factors Contributing to Ether's Price Increase
Analysts suggest recent Ether price changes are driven by spot buying. Bitget Research's chief analyst Ryan Lee notes that the recent breakout above $3,600 was due to accumulation rather than speculation, indicating potential for further growth in Ether.
Impact of Bitcoin's Price on Ether
Bitcoin reached a new high before beginning a correction. Some analysts speculate that Bitcoin's price movement may enable Ether to gain momentum, allowing funds to flow into altcoins. Continued positive ETF inflows may also bolster Ether's price ascent.
The growing interest in leveraged Ether trading tools, along with the current market sentiment, suggests Ether is poised for growth, potentially surpassing the $4,000 mark.
