Ethereum News: Ethereum Rallies as Smart Money Flows In, Shorts Wiped Out

Ethereum has experienced a significant surge in the past 24 hours, backed by strong institutional and whale investments. The influx of smart money has wiped out millions in Ethereum shorts, indicating a potential bullish trend.

Ethereum Rallies as Smart Money Flows In

Ethereum has surged 5.23% in 24 hours, backed by a significant influx of smart money. With a 30% volume spike and strong support at $2.5K, the question remains how high this rally can go. Risk appetite is increasing as futures traders ramp up leverage, resulting in the wiping out of $37.21 million in Ethereum shorts in just one day. Institutions and whales have been buying into ETH, injecting an additional $100 million into the market, helping to hold $2.5K as solid support.

CBOE Files for 21Shares Spot-Staked Ethereum ETF

Ethereum saw spot inflows for the first time in February, following the filing of an application for a spot-staked Ethereum exchange-traded fund (ETF) by the Chicago Board Options Exchange (CBOE) on behalf of 21Shares. The proposed fund aims to allow staking of 21Shares' Ethereum ETF holdings, offering investors a chance to earn passive income. This development comes as Ethereum is poised for an uptrend with a growing bullish bias.

Ethereum Foundation Allocates $120 Million of ETH to DeFi Protocols Aave and Spark

The Ethereum Foundation has allocated $120 million worth of ETH to DeFi protocols Aave and Spark, in its largest direct liquidity move to date. The allocation aims to generate passive income while reducing reliance on ETH sell-offs for operational funding. This decision comes as Ethereum faces inflationary pressures due to increased Layer-2 adoption, which reduces transaction fees and bypasses ETH's burn mechanisms. With ETH issuance now outpacing burns, the foundation's strategy seeks to mitigate market concerns while capitalizing on yield opportunities.

Ethereum Price Faces Rejection Despite Ethereum Foundation's $120 Million DeFi Investment

Ethereum (ETH) price faced rejection at $2,817, despite the Ethereum Foundation deploying nearly $120 million across various DeFi protocols such as Aave, Compound, and MakerDAO's Spark. The move, however, failed to catalyze ETH's price as the crypto market remains subdued by macroeconomic factors. The Ethereum Foundation allocated 45,000 ETH to these DeFi protocols, but the price of ETH is still down 1% on Thursday.