Key Points
Ethereum’s Positive Trend
Ethereum, a leading altcoin, has been trending positively in the past week.
This comes after months of bearish consolidations.
Ethereum (ETH) has seen a 4% increase in the past 24 hours.
It is currently trading at approximately $3,840.
The altcoin hit a six-month high of $3,900 due to Bitcoin’s (BTC) rally above the $100,000 threshold early Thursday.
At this point, Ethereum is only 21% shy of its all-time high of $4,891 from November 2021.
The second-largest cryptocurrency reached a market cap of $463 billion.
Its daily trading volume increased by 46% to $63 billion.
Factors Driving Ethereum’s Rally
There are several factors propelling Ethereum upwards.
These factors are creating a strong buying pressure.
Prominently, U.S.-based spot ETH exchange-traded funds have seen eight days of consistent inflows.
Data provided by Farside Investors shows that spot Ethereum ETFs saw a net inflow of $882.3 million since Nov. 22.
These inflows mostly came from BlackRock’s ETHA fund.
This resulted in total inflows into these investment products reaching $901.3 million.
This happened despite a $3.4 billion outflow from Grayscale’s ETHE fund.
Moreover, Ethereum recorded a net outflow of $820 million from exchanges in the last seven days.
This included a one-month high outflow of $385 million on Dec. 4 alone.
This data comes from the analytics platform IntoTheBlock.
The on-chain movement suggests that investors have been accumulating the asset.
According to ITB data, 74% of Ethereum holders have held onto their assets for over a year.
This could potentially lead to a decrease in selling pressure for the leading altcoin.
ITB data also shows that whale transactions of at least $100,000 worth of ETH reached $73 billion over the last week.
Growing whale activity often triggers FOMO (fear of missing out) among retail investors.
This consequently increases buying pressure due to greedy market conditions.
Additionally, Ethereum’s decentralized finance sector has been growing steadily.
According to a report, Ethereum’s DeFi total value locked reached $72.9 billion.
The total TVL hit a 31-month high of $134.7 billion.
Despite the price hike to June highs, Ethereum’s Relative Strength Index is still within the neutral zone.
It is currently sitting at 63.
This suggests a maturing accumulation phase for the leading altcoin, following the path of the digital gold.
Please note that this article does not represent investment advice.
The content and materials featured on this page are for educational purposes only.
