Ethereum Poised For All-Time High As Confidence Grows
Dec 18, 2024
2 min read
Ethereum is on the verge of breaking its all-time high, with prices recently hitting $4,108, marking a significant milestone for the cryptocurrency. This surge is fueled by increasing institutional interest and a notable decrease in the supply of ETH on exchanges, leading to heightened investor confidence.
Key Takeaways
Ethereum's price reached $4,108, nearing its all-time high of $4,891.
Institutional inflows into Ether products have surged, indicating strong market confidence.
Whale wallets now control over 57% of the total ETH supply, signaling bullish sentiment.
Ethereum's Recent Price Surge
On December 16, 2024, Ethereum (ETH) achieved a new year-to-date peak of $4,108, reflecting an 8% increase in just one week. Over the past month, ETH has surged by 28%, and an impressive 82% over the past year. This upward trend has brought the cryptocurrency within 18% of its previous all-time high set in November 2021.
The recent price increase was accompanied by a significant rise in trading volume, which jumped by 30% to reach $42 billion. This surge in activity indicates strong momentum behind Ethereum's rally.
Factors Driving Ethereum's Growth
Several key factors are contributing to Ethereum's bullish trajectory:
Dwindling Supply on Exchanges: The supply of ETH on exchanges has hit an 8.5-year low, with only 9.2 million ETH available. This represents a nearly 10% decrease over the past year, suggesting that investors are holding onto their assets rather than trading them.
Increased Whale Activity: Large holders, or "whales," now control approximately 57.35% of all circulating ETH. This concentration of ownership is the highest since 2017, indicating a strong belief in Ethereum's long-term potential.
Institutional Demand: The launch of spot Ether exchange-traded funds (ETFs) has attracted significant institutional interest, with inflows exceeding $2 billion in just three weeks. This trend is expected to continue, further bolstering Ethereum's price.
Future Price Predictions
Analysts are optimistic about Ethereum's future, with many predicting that it could soon surpass its previous all-time high. Some forecasts suggest potential price targets ranging from $5,000 to as high as $15,937 by mid-2025. Key resistance levels to watch include:
$4,068: A critical level that, if surpassed, could lead to a rally towards $4,800-$4,900.
$4,100: Breaking this level could pave the way for a significant price increase, potentially reaching new all-time highs.
Conclusion
As Ethereum continues to gain momentum, the combination of dwindling supply, increased whale activity, and strong institutional demand paints a positive picture for the cryptocurrency's future. Investors are closely watching key resistance levels, and if Ethereum can maintain its upward trajectory, it may soon achieve new all-time highs, further solidifying its position in the crypto market.
Sources
Ethereum poised for all-time high as confidence grows - Dimsum Daily, Dimsum Daily.
Ethereum Price Over $4000, But What’s Next for ETH in 2024? - Crypto News Flash, Crypto News Flash.
Ethereum (ETH) Poised For $6K Surge As Institutional Inflows Signal Major Breakout, TronWeekly.
Ethereum Reaches $4,100 For The First Time In Over Three Years, Aiming For $5,000 Next, NewsBTC.
Ethereum hits 3-year price milestone; will $5K be next? | PortalCripto, PortalCripto.