Ethereum is trending higher and outperforming Bitcoin. Earlier today, Ethereum's price broke $3,900 before dropping sharply below $3,800 and then rebounding to current rates.

To explain the volatility, some analysts suggest that a large sell order by the MEV trading firm, Symbolic Capital Partners, might be responsible. According to a crypto journalist, Symbolic Capital Partners sold 6,968 ETH, worth over $27 million, at an average price of $3,930 in one minute. This included a significant transaction of 3,497 ETH with a "high bribe fee" of 90 ETH. The motive behind this bulk sale is unclear, but it seemed to have caused the price fluctuations.

Despite this volatility, Ethereum is up 30% from its May 2024 lows and remains technically bullish as long as prices stay above $3,700. If this support holds, prices could rise to March highs around $4,100.

Sentiment remains positive, with open interest in Ethereum futures on exchanges like Binance, OKX, and Bybit rising to over $4.6 billion, indicating trader confidence.

The excitement around Ethereum is fueled by progress in approving spot exchange-traded funds (ETFs). The SEC has been actively communicating with potential issuers and requesting changes, particularly related to ETH staking. Some analysts argue that not allowing staking for spot Ethereum ETFs is positive, as staking could lower yields, making solo staking less attractive and impacting network decentralization.