As a seasoned crypto enthusiast who has weathered multiple market cycles, I find myself deeply intrigued by the current state of Ethereum (ETH). The combination of institutional demand, increased OI, and positive inflows into Ether-based ETFs paints a compelling picture of a bullish trend.
In the upcoming days, it’s anticipated that Ether (ETH) could surpass its previous record high, as it recently reached a new peak for the year so far at $4,108 on December 16th.
Over the past seven days, the price of Ether (ETH) has risen by a substantial 8%. In the past month, this second-largest cryptocurrency has seen an impressive increase of 28%, while its value has surged by a remarkable 82% over the course of the last year.
According to information from CryptoMoon Markets Pro and TradingView, Ether’s price is currently at approximately $4,000. This figure represents a difference of nearly 18% compared to its all-time high of $4,891, which was reached on November 26, 2021.
Today’s surge in Ethereum (ETH) is accompanied by a significant increase in daily trading volume, currently standing at approximately $42 billion, implying that this upward trend is gaining traction.
Given that Ethereum investment products have been receiving steady influxes along with other essential elements and on-chain indicators, just how far might the price of Ethereum ascend?
Decreasing ETH supply on exchanges
A key point favoring Ether’s price increase is the decrease in its supply held on exchanges. Data from the onchain market intelligence firm CryptoQuant indicates that the amount of Ether stored on exchanges has dropped to a 8.5-year minimum of 9.2 million ETH, representing a decline of almost 10% over the past year.
Since October 2023, there has been a significant decrease in the flow to and from exchanges. This reduction coincides with an increase of approximately 73% in the value of Ether during the same timeframe, as withdrawals from trading platforms escalated rapidly.
Ethereum whales grow in number
Increased stashing by big investors might account for part of the decrease in available assets on trading platforms during the past couple of weeks.
As a seasoned crypto investor, I’ve found myself in an intriguing position lately. The holdings in the so-called ‘Ethereum Whale’ wallets have surged to unprecedented heights, representing a staggering 57% of all Ethereum (ETH) currently in circulation.
At present, there are approximately 104 digital ‘whale’ wallets that possess more than 100,000 units of Ethereum. According to recent reports by Santiment, these whales collectively control an estimated $333 billion worth of this cryptocurrency.
As a researcher, I’ve recently observed an intriguing trend in Ethereum (ETH) wallet distribution. Wallets containing between 10 ETH and 100,000 ETH are currently at a record low of 33.5%, which is quite significant. Moreover, wallets holding less than 100 Ether account for only 9.19% of the total supply, marking a near four-year low in this category. This analysis suggests a potential shift in the Ethereum ecosystem.
“Ethereum’s largest 100K+ whale group owns an all-time high 83.81 million tokens, and the asset briefly returns above $4,000 market value.”
This implies that whales (large investors) haven’t cashed out during the recent price surge but instead have been buying more. If this pattern persists, it could signal a prolonged bullish (optimistic) outlook for the market.
During December, it was noted that the average number of new Ethereum wallets per day surpassed 130,200, reaching an eight-month peak, as reported by Santiment.
Additionally, as Ether showed a bullish trend, there was also a rise in the total open interest for ETH in the derivatives market. This figure climbed from 9.8 billion ETH on November 5 to a record high of 20.7 billion ETH by December 17.
The graph demonstrates a 24% surge in Ether’s Open Interest (OI) over the last week, implying an uptick in interest for highly-leveraged ETH trades and a general influx of funds into the market as a whole.
Institutional demand for Ether products soars
Over the past few days, I’ve noticed a consistent trend of increased investment into U.S.-listed spot Ethereum ETFs, starting from November 22. This inflow suggests a growing institutional appetite for these particular ETFs.
On December 5th, these investment products experienced their largest single-day influx of funds since they were introduced on July 23rd, totaling over $428 million. Additionally, Spot Ether ETFs have accumulated a combined $854.8 million in investments during the week ending December 13th.
In simpler terms, there’s been a steady increase in the use of Ethereum-related exchange-traded products (ETPs), as shown by seven consecutive weeks of investments totaling approximately $3.7 billion.
CoinShares-monitored Ether Exchange-Traded Products (ETPs) allow for investment in Ethereum, either through tracking a specific market index or an individual Ethereum exchange-traded fund (ETF).
CoinShares head of research James Butterfill said that this marked a “dramatic improvement” in investor sentiment toward ETH.
“Ethereum saw its 7th consecutive week of inflows of US$1bn, with inflows over those 7 weeks totaling US$3.7bn, a dramatic improvement in sentiment.”
If institutional interest continues to be strong, it’s probable that the price of Ethereum (ETH) could approach its record highs from November 2021 within the next few days.
Analysts set 5-digit targets for ETH price
According to data from CryptoMoon Markets Pro and TradingView, Ethereum (ETH) is making an effort to change the significant $4,000 resistance level into a fresh support foundation, potentially serving as a springboard towards new record-breaking highs.
As I closely watch the cryptocurrency market,” I find myself saying, “The battle to reach $4,000 is ongoing. If we manage to break through this level, it could signal a significant shift in the game.
According to analyst Venturefounder, Ethereum (ETH) has been forming a triangular pattern over the past three years, implying a potential shift or “new phase” is on the horizon.
According to the analyst’s analysis, they looked at the two-week candle chart, which is part of a long-term consolidation period. This pattern suggests a potential Ethereum price prediction exceeding $15,000.
“Base Case: Ethereum likely to repeat this impulsive breakout it did between 2016-and 2017 to shoot to new ATH. Price target: $15,937 by May 2025”
According to Michael van de Poppe, founder of MN Capital, we may experience a similar market cycle as in 2017, with significant potential for growth. He predicts that the peak price for Ethereum could range between $15,000 and $25,000.
On the contrary, established players in the cryptocurrency market seem to be setting more moderate price predictions. For instance, VanEck anticipates that the peak price of Ethereum could reach $6,000 and that of Bitcoin might go up to $180,000 by 2025.
According to Bitwise Asset Management, they anticipate that the value of Bitcoin could reach $200,000, Ether might be worth $7,000, and Solana (SOL) could top off at $750 by the year 2025.
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2024-12-17 20:20