Ethereum price rises past $4,000

Ethereum's (CRYPTO:ETH) recent surge above $4,000 has garnered attention in the cryptocurrency market.

This price movement is linked to increased activity in both Ethereum's derivatives market and network.

According to a report by Bybit, the derivatives market for Ethereum has seen a strong uptick, signaling growing investor confidence.

“Ethereum has seen a significant increase in volume in the derivatives market recently. It is likely that the token price will hit a new peak in the first quarter of 2025,” noted Bybit representatives.

The market's recovery, following a deleveraging event in mid-November, suggests that traders are regaining confidence in Ethereum.

The rise in Ethereum's derivatives volume coincides with a surge in network activity.

In December, Ethereum’s network saw an average of 130,000 new addresses created daily, the highest level observed in eight months.

This increase in new addresses has sparked renewed interest in Ethereum and is seen as a positive sign for its future.

“The permanence of Ethereum at these levels supports the increase in new address creation. It may positively influence long-term price movements,” stated Bybit’s report.

As Ethereum continues to attract attention, analysts suggest that it could reach new highs and become more competitive against Bitcoin (CRYPTO:BTC), which currently stands at around $105,000.

Ethereum’s growing activity and investor interest are expected to keep it in focus as the cryptocurrency market enters 2025.

The market dynamics indicate that Ethereum could potentially reach new record highs in the coming months, with its strong derivatives market and increasing network activity providing vital support.

These factors could position Ethereum for significant price movement in 2025, with both individual and institutional investors closely monitoring its progress.