3 Reasons Behind the Rise of $ETH Surpassing 2,600 USD

The second largest cryptocurrency by market capitalization has maintained a price range of $2,500 to $2,600 for over a month. However, recent data shows that this asset has surpassed the $2,600 mark, fluctuating around $2,650. Several factors have contributed to stabilizing ETH's price around this level in the past few weeks. This article highlights three main reasons. Why is the price of ETH increasing? A potential factor is the continuous flow of money into exchange-traded funds focused on Ether (ETF). Public data shows that most companies issuing Ethereum ETFs, including BlackRock and Fidelity, have recorded a steady inflow of money for several consecutive days. This data indicates that many investors are interested in this investment vehicle, which provides exposure to the price volatility of the second largest electronic money. Another driving force that could push the price of ETH above $2,600 is the new trend among companies setting up ETH storage. In recent months, companies like BioNexus Gene Labs and SharpLink Gaming have raised significant amounts of money to accumulate ETH as a storage asset. The stable demand for this digital asset may have helped its price maintain the current level. Analysts point to the third factor behind the increase in the price of ETH – a decline in the amount of ETH held in centralized exchanges (CEX). Usually, whenever most ETH holders deposit their holdings to a CEX, it indicates that they are likely about to sell. In contrast, holding ETH in a non-custodial wallet indicates that most users intend to maintain their positions for the long term. How High Can ETH Rise? This year has seen some of the largest cryptocurrencies reach their highest market prices ever. However, ETH is among those with struggling market data. It's no surprise that ETH has been unable to unlock the new all-time high (ATH). Remember that it reached a peak value of $4,891 in November 2021. The closest value it reached was $4,000, which was recorded in December 2024. At the time, most of the top crypto assets skyrocketed in market value as the pro-crypto American politician, Donald Trump, won the presidential election. Although the second cryptocurrency has dropped in value to around $2,650 at the time of writing, its price stability is worth considering as it could become a support level for the digital asset. If the asset maintains this price for an extended period, we may see ETH regain higher prices and reach its current all-time high.