Why has the price of Ethereum been rising recently?

The rise in Ethereum prices is mainly due to Bitwise’s recent ETF application filed with the U.S. Securities and Exchange Commission, as ETH prices could reach $4,000 in December.

ETH has gained 5.75% in the past 24 hours, reaching around $3,640 on November 28. The second-largest cryptocurrency has outperformed the cryptocurrency market, which has gained 2.82% in the same period.

Bitwise files for 10 cryptocurrency index funds, including Ethereum

Ethereum’s recent rally can be attributed to high investor optimism regarding Bitwise Asset Management’s recent exchange-traded fund (ETF) filing.

Notably, the company has filed an application with the U.S. Securities and Exchange Commission (SEC) to launch an ETF based on its existing 10-cryptocurrency index fund. The fund was established in November 2017 and is primarily comprised of Bitcoin (75.14%) and Ethereum (16.42%), with the rest of the assets allocated to cryptocurrencies such as Solana, XRP, and ADA.

Most of the cryptocurrencies included in the proposed ETF have surged in the past 24 hours, reflecting growing speculation and optimism about the investment product's potential approval.

ETH/USD vs. BTC/USD, XRP/USD, ADA/USD and SOL/USD one-month performance

Ethereum open interest hits all-time high

As the price of Ethereum rose, its futures market open interest (OI) also rose sharply. As of November 28, OI has reached more than $24 billion, a record high, and in the past 24 hours, OI has risen by more than $4 billion.

Ether’s weekly funding rate has been positive since October and was around 0.53% as of November 28.

ETH futures OI, financing rate

Record high OI and persistently positive funding rates create a feedback loop: bullish sentiment drives increased market participation, which in turn drives prices higher.

Additionally, these developments could reflect broader confidence in the Ethereum ecosystem and its prospects, further supporting its upside.

Ethereum price expected to rise 10% in December

Ethereum’s price gains today were further fueled by strong technical support and a bullish chart pattern breakout.

The cryptocurrency has rebounded from the 50-period exponential moving average (EMA) on the four-hour chart, a key level that has served as support during its recent uptrend.

ETH/USD four-hour price chart

Moreover, Ether has entered the breakout phase of its current cup-with-handle pattern, which is a classic bullish continuation structure. The pattern formed over a few weeks and the breakout occurred when the price surged above the $3,440 neckline level.

A cup-handle breakout typically projects a measured move equal to the cup’s depth, giving Ether an upside target near $3,940.

In other words, Ethereum prices could rise by more than 10% in December.