Here's Why Ethereum Soared More than 6% Today, Breaking $3,300 for the First Time In Nearly a Month

As of 6:15 p.m. ET, Ethereum's (CRYPTO: ETH) 6.1% move over the past 24 hours is the biggest move out of any top-5 cryptocurrency ranked by market capitalization.

As the world's second-largest token in existence with a market cap of around $400 billion-Ethereum actually just crossed that threshold (and the $3,300 token price level) today-these sorts of intraday moves mean billions of dollars of gains for investors collectively.

This is Ethereum's highest level since Nov. 13, and caps off an incredible two weeks in which Ethereum rallied from a low of below $2,700 per token to its current level. Indeed, I'd argue that most investors would accept a 23% return over such a short time frame in any asset.

Let's delve into what's driving this sharp rebound in investor optimism, and whether this move can be sustained.

More catalysts materialize, with Ethereum becoming a must-own token

Source: Getty Images.

As I noted yesterday, there's plenty of enthusiasm among investors of all sizes in Ethereum right now. From small retail investors like you and me (well, I'll speak for myself) to giants like Tom Lee and his BitMine Immersion Technologies, which has continued to buy Ethereum at an impressive rate, capital inflows into this integral layer-1 network are ongoing.

I'd expect to see similar headlines over time, as investors look to own a piece of the digital backbone of most of the decentralized finance sector (which happens to run on Ethereum).

That said, over the past day, there were a couple of additional catalysts that caught my eye that investors are clearly latching onto. First, Robinhood launched staking capabilities for Ethereum and rival network Solana, providing the ability for investors to earn additional yield on their Ethereum holdings when investing via this centralized exchange. That's a broad positive not only for these tokens, but the industry overall, and is a catalyst worth cheering.

Second, and perhaps more important for the sector overall, were reports that the Office of the Comptroller of the Currency confirmed today that U.S. banks may now "legally conduct 'riskless principal' transactions in crypto assets." This could pave the way for a flood of new capital into digital assets, a move I'd argue would disproportionately benefit Ethereum holders and those of other top-5 cryptocurrencies moving forward.

Chris MacDonald has positions in Ethereum and Solana. The Motley Fool has positions in and recommends Ethereum and Solana. The Motley Fool has a disclosure policy.