Over the past seven days, the price of Ethereum cryptocurrencies increased by almost 40%, which allowed her to enter the top 15 of the fastest growing assets among the TOP-100 of the largest capitalization. Experts surveyed by decrypt noted that the rebound may turn out to be empty from the fundamental point of view and based “on the politically steps of one person,” writes RBC Crypto.
The price of the second in capitalization of cryptocurrency increased by almost 40% over the past week – to the level of $ 2.48 thousand, according to CoinmarketCap. During the same period, bitcoin grew to $ 103.3 thousand, which amounted to an increase of about 10%. XRP added 21%, BNB – 10%, SOL – 20%. The total capitalization of the crypto rush reached $ 3.3 trillion with a height of almost 14%.
“There is no doubt that the recent bouncer of Bitcoin, Ethereum and Solana reflects the resumed optimism in the market,” said the operating director of Unity Wallet, James Toledano.
But the expert fears that this growth is not based on fundamental factors on which investors need to concentrate. “In my opinion, this may turn out to be a temporary rebound – the market depends on the moods and political steps of one person. Those who are seriously related to cryptocurrencies would prefer that fundamental factors move the price, ”he said.
Toledo has in mind the actions of US President Donald Trump and the situation around the trade uncertainty between the United States and other countries. Although some experts nevertheless have the cause for price growth recently in the crypto, it is fundamental factors that have been accumulating the last few months: an increase in the demand for cryptocurrency from large investors in the over-the-term market, stable tributaries in the crypto-mutf and improving the news and political background related to trade wars.
Experts’ skepticism is also based on a weak tributary of capital in exchange funds (ETF) based on Ethereum. While Bitcoin-ETF recorded a clean influx of about $ 600 million per shopping week before May 12, the ETF based on the Air recorded an outflow of $ 55 million, according to Sosovalue.
“The scale and power of price restoration, combined with a moderate outflow of Ethereum-ETF funds, suggest that crypto-investors, and not institutional tributaries,” said Fineqia International Matteo Greco.
Exchange Traded Funds, ETFs, based on cryptocurrencies, provide investors with legal access to digital coins through the NASDAQ and NYSE exchanges in shares format. The issuance of new shares requires the actual supply of cryptocurrencies with funds, this provided the cryptor of a significant influx of capital and became the driver of its growth in 2024. Pure outflow of funds is the difference between the volume of extinguished and issued ETF shares. If the outflow exceeds the influx, the funds sell cryptocurrency to cover the output applications.
Without institutional demand for Ethereum, Toledo does not see a new historical maximum at the price of ETH, however, it notes the possibility of consolidating the quotations at a high level: “We can see signs of price consolidation even without a stable institutional impulse and further clarity in issues of regulation before any new historical maximums are tested.”
Ethereum update
Another possible reason for the increase in the price of Ethereum could be the Pectra update, which took place in early May, which can lead to institutional demand.
“The Pectra update has passed without problems, which increased the confidence in Ethereum’s ability to scale and paved the way for further institutional acceptance,” said Sean Dawson, head of the research department in Derive, insured in the decentralized finance sector.
Ethereum developers call Pectra the most significant update since the transition of the network to the Proof-OF-Stake algorithm in the fall of 2022. The update is also preparing for the following updates, the first of which is expected at the end of 2025 or early 2026.
But there is also an opinion that the update will not affect the price and is unlikely to lead to a significant increase in the price of ETH, ”and the“ broadcast ”needs to find other reasons for the investors to have an incentive to keep this token, according to Parataxis Capital, Edward Chin.
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Source: Cryptocurrency
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