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Ethereum (ETH), the second-largest cryptocurrency by market cap, appears to be attracting attention as analysts note market metrics that point to a potential next step for ETH.
Recent data from CryptoQuant has highlighted accumulation patterns and exchange-traded fund (ETF) flows, providing a detailed look at Ethereum’s potential path as it unfolds. Poor performance compared to Bitcoin In the current session.
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Analyze trends in accumulation and flows of ETFs
In a series of Supports It was shared on social media platform X, where CryptoQuant analysts analyzed key metrics for Ethereum. One notable observation was Ethereum’s balance Accumulation titles. These addresses now hold approximately 19.5 million ETH, worth approximately $78 billion.
For comparison, Bitcoin accumulator addresses contain about 2.8 million Bitcoins, worth $280 billion. While the dollar value of Bitcoin held is four times greater than Ethereum, this is in line with its relative market cap, providing… Insights into investor behavior.
Another important metric highlighted was the steady inflow into Ethereum-focused ETFs over the past months. Notable increases were recorded on several key dates, including $1.1 billion on November 11 and $839 million on December 4, 2024.
According to CryptoQuant analysts, these continued inflows are a strong indicator of institutional buying interest, reinforcing Ethereum’s growing appeal among investors. Investors are widespread.
The Ethereum ETF has seen steady inflows in recent months.
Main screws on:
November 11, 2024: $1,100 million
November 21, 2024: $754 million
November 25, 2024: $629 million
November 27, 2024: $883 million
December 4, 2024: $839 millionThese flows reflect strong buying pressures. pic.twitter.com/OIwWNmRPYB
— CryptoQuant.com (@cryptoquant_com) December 10, 2024
Despite strong demand for ETFs, Ethereum’s price movements have been less dramatic compared to Bitcoin’s performance this cycle. Historically, Ethereum price peaks have lagged behind Bitcoin prices, as we saw during the 2021 bull run.
At the time, Bitcoin reached an all-time high (ATH) in March with a gain of 480%, while Ethereum peaked a few months later with an increase of approximately 1,114%. However, in the current session, Ethereum appears to have underperformed, indicating a shift in market dynamics.
Recipient size and potential growth
Furthermore, a big area of interest cited by analysts is the volume of Ethereum takeovers, which reflects market sentiment by comparing strong buying and selling activity.
CryptoQuant reported that the recipient and seller volume of Ethereum has reached a record low of -400 million. This strong selling activity is reminiscent of patterns observed prior to the ATH in 2021. While the current selling pressure may appear bearish, it may also indicate that the market is approaching a level Critical pivot point.
Ethereum Taker’s trading volume has reached an all-time low.
Ethereum’s price weakness is due to high buyer and seller volume, which has now reached a record low of -400 million, indicating a strong sell-off.
A similar pattern occurred before the Ethereum peak in May 2021. Despite this, there may still be… pic.twitter.com/OmRYvAzjxI
— CryptoQuant.com (@cryptoquant_com) December 10, 2024
Analysts emphasized that Ethereum’s poor performance in this cycle does not prevent the possibility of achieving significant growth.
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The interplay between accumulation patterns, ETF flows, and borrower volume suggests that Ethereum still has room for upward momentum.
Featured image created with DALL-E, chart from TradingView
