Ethereum’s( ETH) rise is aided by its expanding story, spot ETF, and altcoin beta.

The ETH price stunned the market with a significant show of strength. Cointelegraph discusses what’s driving the bullish momentum. Ether ETH’s $2,613 price broke through the $2,400 resistance level for the first time since May 2022, as traders focused on the potential of an Ethereum exchange-traded fund (ETF) following the approval of a spot Bitcoin ETF. 

The price of ether has risen substantially from its initial price of $2,343 on January 10, surging more than 7.8% in the last 24 hours and 85% over the last 12 months to a year-to-date high of $2,444. 

In the proceedings following the SEC’s inaccurate tweet regarding the approval of spot BTC ETFs, which caused substantial price volatility in the Bitcoin BTC $46,700 price, ETH was the only non-stablecoin coin among the top 10 cryptocurrencies by market capitalization to trade with a bullish bias.

Ethereum (ETH) Liquidations Hit $31.7 Million in a Day

Ether last traded above $2,400 on May 3, 2022, when it peaked at $2,529, then fell below $1,000 on July 18, 2022, as a result of the Terra ecosystem collapsing.

Layer 2 network tokens like Optimism (OP) and Mantle’s MNT increased by up to 15% and 9%, respectively. These networks construct separate blockchains on top of the Ethereum network, allowing users to transact much more quickly and cheaply than on the basic blockchain.

According to X’s cryptocurrency analysts, market participants are preparing for the adoption of a spot Ethereum ETF, which could offer professional investors in the US with indirect exposure to ETH.

On Twitter, Michaël van de Poppe, the CEO and Founder of MN Trading, wrote that the momentum surrounding Bitcoin and the ETF approval is skewed, but there is a possibility that Ethereum might also receive a Spot ETF”.

According to Coinglass data, short-position liquidations for Ethereum have reached $31.7 million in the last day, and as of this writing, the total is still rising.

On January 10, market players anticipate the SEC reaching a decision on all applications for spot Bitcoin ETFs. Optimism is high for imminent clearance, especially since the CBOE announced on January 10 that it had approved the securities listings for several asset managers.