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Ethereum is still struggling to reach its March high of $4,000, let alone its all-time high of $4,891 in November 2021.
Ethereum (Ethereum) On-chain movements along with the DeFi sector have remained strong while the leading altcoin is seeing high price volatility amid market turmoil.
Ethereum briefly touched a four-month high of $3,444 on Tuesday, November 12. After prices fell from their local high, the altcoin has consolidated between $3,120 and $3,290 over the past two days.
While Ethereum is still down 34% from ATH, its fundamentals remain strong.
ETF flows
Spot Ethereum Exchange-traded funds In the United States, successive flows have been recorded since the US elections last week.
Investment products started the week with record net inflows of $295.5 million led by Fidelity’s FETH funds and BlackRock’s ETHA funds — $115.5 million and $101.1 million, respectively.
On Wednesday, buy ETH ETFs king Net inflows amounted to $146.9 million, bringing total inflows to $241.7 million.
This is the first time these Ethereum-based investment products have seen strong demand since their launch in July.
Accumulation of whales
Ethereum is also seeing an increasing accumulation of whales as market participants get greedy.
Top holders saw a net inflow of more than 97,000 ETH, worth roughly $310 million, yesterday, according to data provided by IntoTheBlock.
Whale accumulation often sparks fear of missing out among retail investors. This usually results in high price volatility before gaining steady upward momentum.
Exchange outflows
In addition to whales, retail investors have also been busy accumulating Ethereum.
ETH recorded a net outflow of $1.12 billion over the past week, data from ITB showed. A large net bearer-to-exchange ratio indicates strong retail accumulation on November 9, 11, and 12.
Exchange outflows usually lead to long-term retention, which would eventually pave the way to steady growth.
The growth of decentralized finance
Ethereum Decentralized finance The sector also witnessed an increase.
The total value locked for Ethereum-based protocols increased by nearly $10 billion after the cryptocurrency market gained upward momentum following Donald Trump’s victory in the US presidential election, according to… Data Introduction by Devi Lama.
Moreover, the total fees collected before Decentralized finance The value of Ethereum network platforms has tripled over the past seven days to $18 million. These protocols generated a total revenue of $15.5 million over the past day.
Will it reach $4k before 2025?
Amberdata, a market analysis firm, claims that there is an 18% chance that Ethereum will reach the $4,000 mark by the end of the year.
“We are still a long way from ETH’s all-time high. Which makes us think we may have some room to run.
Amberdata wrote in the X post.
Strong growth in ETH ETFs and increasing accumulation of whales could add to the positive momentum for Ethereum price.
However, it is important to note this Macro events It will likely shift market focus the other way despite the bullish signs on the chain.
