Ethereum's recent price surge is driven by renewed investor interest and a broader market rally, following a cooler-than-expected inflation report that has boosted risk appetite. The shift from outflows to inflows in Ethereum ETFs indicates a change in sentiment, as investors respond positively to the lower-than-anticipated rise in the producer price index. This has been a catalyst for the market's upward movement, despite previous challenges such as significant ETF outflows and liquidations. Analysts have observed that Ethereum's exchange reserves have dropped to a two-month low, suggesting that more tokens are being held rather than sold, reflecting growing confidence among long-term holders. Additionally, the derivatives market shows moderate optimism, with futures premiums indicating demand from both institutional and retail participants.
The Volatility Shares Trust 2x Ether ETF (ETHU) experienced a significant increase, rising 12.29% to $7.86 at 2:40 PM on Wednesday, January 15.