Ethereum sees major price surge and trading volume spike

9th FEbruary 2025 – (New York) Ethereum (ETH) experienced notable volatility today, with its price rising by 7.2% within an hour, climbing from $3,450 to $3,698, as reported by Crypto Rover on Twitter at 10.30am UTC. This surge was accompanied by a significant increase in trading volume, which jumped from an average of 10 million ETH per day to 15 million ETH during the same period.

Trading activity for the ETH/USD pair saw a 30% increase, while the ETH/BTC pair recorded a 22% rise in volume. On-chain metrics reflected this heightened activity, with active addresses increasing by 15% to 650,000, and transaction volumes on the Ethereum network rising by 20% to 1.2 million transactions daily. Analysts attributed this surge to speculation surrounding an upcoming Ethereum Improvement Proposal (EIP) that could greatly enhance the network’s scalability.

The implications of this price movement were felt across the cryptocurrency market, with Bitcoin (BTC) observing a modest 2.5% increase, rising from $45,000 to $46,125, and Cardano (ADA) experiencing a 4.8% boost, moving from $1.20 to $1.26. The correlation between ETH and BTC strengthened, with the correlation coefficient increasing from 0.65 to 0.72, indicating a closer relationship between the two assets.

Technical indicators during this period further illustrated the market’s bullish sentiment. The Relative Strength Index (RSI) for ETH climbed from 65 to 72, suggesting overbought conditions, while the Moving Average Convergence Divergence (MACD) showed a bullish crossover. Additionally, the Bollinger Bands widened significantly, indicating potential for further price fluctuations.

In the wake of these developments, trading volume on major exchanges like Binance and Coinbase surged by 35%, rising from an average of 5 million ETH per day to 6.75 million ETH. This volume increase, combined with positive technical indicators, suggests strong market interest and the potential for continued upward movement in ETH’s price.

While there were no direct AI-related developments impacting Ethereum specifically on February 9, the overall sentiment towards AI in the blockchain space remains optimistic. Ongoing research and development in AI-driven trading algorithms and smart contract automation are notable trends. The correlation between AI-related tokens and major cryptocurrencies like ETH and BTC remains moderate, with a coefficient of 0.45, indicating that while AI advancements do not directly influence ETH’s price, they contribute to broader market sentiment.

In related news, Crypto Rover reported the accumulation of $100,000 worth of the $SAND token over the past two days, signalling potential bullish sentiment among retail investors. The price of $SAND rose from $0.75 to $0.85 during this period, with trading volume increasing significantly from 120 million to 180 million $SAND. This accumulation may influence short-term market behaviour, prompting traders to monitor price movements in response to increased demand.