Ethereum, the leading altcoin in the cryptocurrency market, has been showing signs of a bullish trend after months of consolidation. In the past 24 hours, Ethereum has seen a 4% increase in its price, trading at around $3,840. This surge in price was influenced by Bitcoin’s rally above $100,000 early on Thursday, with Ethereum reaching a six-month high of $3,900.
Currently, Ethereum is 21% away from its all-time high of $4,891, which was achieved in November 2021. The cryptocurrency has also reached a market cap of $463 billion, with a daily trading volume of $63 billion.
Several factors are contributing to the upward momentum of Ethereum. Notably, U.S.-based spot Ethereum exchange-traded funds have been experiencing consistent inflows, with a net inflow of $882.3 million since November 22. This increase in investment comes mostly from BlackRock’s ETHA fund, pushing the total inflows to $901.3 million despite a $3.4 billion outflow from Grayscale’s ETHE fund.
Moreover, Ethereum has seen an exchange net outflow of $820 million in the last seven days, reaching a one-month high outflow of $385 million on December 4. This movement suggests that investors are accumulating the asset, with 74% of Ethereum holders holding onto their assets for over a year, reducing selling pressure.
Whale transactions involving at least $100,000 worth of ETH have reached $73 billion over the past week, indicating growing whale activity that could trigger FOMO among retail investors. Additionally, Ethereum’s decentralized finance (DeFi) sector has been expanding rapidly, with the DeFi total value locked reaching $72.9 billion and the total TVL hitting a 31-month high of $134.7 billion.
Despite the price increase, Ethereum’s Relative Strength Index is still in the neutral zone at 63, suggesting a maturing accumulation phase for the altcoin. This indicates a potential continuation of the bullish trend for Ethereum, similar to the path of digital gold.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. Investors should conduct their own research before making any financial decisions.