The rise in Ether price towards $2100 was due to developments in layer 2 networks and investors’ expectations for ETF approval.
The asset managed to touch the $2,100 level several times. The $2,100 level has been rejected multiple times over the past three weeks, raising concerns given Ether’s 16.2 percent rise in November. It is eagerly awaited whether the asset will remain stable above the $2,100 level.
Despite all this, spot ETF applications and developments regarding Ethereum layer-2 solutions supported the positive momentum.
ETF excitement continues where it left off
The SEC’s launch of the review process for Fidelity’s spot Ether ETF gave investors hope. A potential approval would strengthen Ether’s status as a digital commodity while making it less likely to be viewed as a security.
The SEC is expected to make its decision on ETFs in January 2024.
Layer-2 developments
The development of Layer-2 networks has also been an important catalyst for Ether. The fact that transaction fees in these networks were around $4 was seen as an extremely important development for the ecosystem.
With this, Ether’s TVL reached 13 million Ether, the highest level in the last two months.
On the Tron network, there was a decline in terms of Ether TVL. The 12 percent decline is seen as evidence of the loss of trust experienced recently due to the hacking of Justin Sun-related organizations.
TVL, especially on layer-2 networks, has also increased significantly. TVL on Blast hit $647 million.
The total TVL of Ethereum’s leading scaling solutions, Arbitrum and Optimism, stood at $2.94 billion.
At the time of writing, Ether is trading at $2,093, according to Bitstamp data.
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