Altcoin

Top Reasons Why Ethereum Price Is Up 2% Today

Published

4 months ago

August 29, 2024

The Ethereum price was up over 2% today, indicating a positive sentiment hovering in the market amid a broader market recovery. The recent gains in Bitcoin price and other altcoins have helped the overall market to stay in the green today after volatile trading so far this week. However, the rally has left many investors seeking answers that could have helped reverse the momentum.

So, let’s explore some of the potential reasons that might have helped gain ETH price today.

Why Is the Ethereum Price Rising?

Investors appear to be regaining confidence in the digital assets market, as evidenced by the overall performance of the market. This positive momentum likely has helped gains in Ethereum price today, along with Bitcoin and other top altcoins. However, here we take a look at some of the reasons that could have contributed to the recent surge in prices.

Ethereum ETF Regaining Momentum

The US Spot Ethereum ETF recorded an inflow of $5.9 million on Wednesday, August 28, which could have bolstered market sentiments. Notably, this is the first time the investment instrument for Ether has noted an overall inflow since August 14, according to Farside Investors data.

The data showed that BlackRock Ethereum ETF (ETHA) led the inflow with $8.4 million, followed by a $1.3 million influx of Fidelity’s FETH. Grayscale Ethereum ETF (ETHE) has continued to stay in the red, with a $3.8 million outflow on August 28.

Meanwhile, the positive data also comes despite the US Spot Bitcoin ETF noting an overall outflow of $105.3 million on Wednesday. Besides, it indicates that the institutions are regaining confidence in the second-largest cryptocurrency by market cap. Having said that, it seems that it has helped in ETH price’s recent gains.

Robust Nvidia Earnings Fuels Market Sentiment

The robust earnings results from the chip maker Nvidia appear to have fueled market momentum. The optimism is reflected by the gains in the US stock market as well. Notably, all three US stock indices were in the green during writing today, indicating a positive market sentiment.

However, despite the positive results, the NVDA stock was down over 4% today, likely as the tech giant failed to impress the investors with its sales forecast. Notably, NVIDIA has reported a revenue of $30 billion in Q2, FY25, an increase of 15% QoQ and 122% YoY, beating market expectations.

The investors have taken a pause ahead of the earnings from the GPU maker, given the dominance of the tech firms on the global financial market. However, with the positive second-quarter earnings, the investors appear to have regained confidence in the financial market, potentially boosting the ETH price.

Overall Market Sentiment Boosts ETH Price

The positive momentum noted in the broader crypto market appears to have helped Ethereum price to witness the recent gains. As of writing, the global crypto market cap was up 2.14% to $2.12 trillion. Simultaneously, the BTC price was also up about 2% and was trading above the $60K mark.

As of writing, ETH price was up 2.02% to $2,570.78, with its trading volume dropping 33% to $14.85 billion. Besides, the Ether Open Interest (OI) surged 1.5% to $10.73 billion, indicating increasing confidence of the investors towards the crypto. Meanwhile, a recent Ethereum price prediction showed that the crypto could hit $3,000 soon if it can break a certain resistance.