Key Points
- Ethereum has seen a near 20% surge in two weeks, indicating a significant accumulation by investors.
- Key metrics such as active addresses and whale transactions suggest potential for price increases.
Ethereum has shown signs of emerging from its recent stagnation, gearing up for what could be a significant bull rally. After a period of underperformance compared to Bitcoin, Ethereum is presently trading at $3,558.
This represents a 20% price increase over the past fortnight, signaling renewed investor interest. Despite ETH being down by 1.4% in the past day, it remains above the crucial $3,500 support level, demonstrating market resilience.
Key Trends Reinforce Ethereum’s Potential
Market analysts have identified key trends that reinforce Ethereum’s potential for sustained growth. CryptoQuant analyst, theKriptolik, provided insights into ETH’s enduring appeal to major investors.
The analyst highlighted that despite Ethereum’s lower price levels compared to previous highs, the ETH Exchange Supply Ratio has fallen to levels last seen in 2016. This decrease suggests that investors are moving their holdings off exchanges, indicating long-term accumulation.
Even with an increased circulating supply, the decline in exchange-held ETH underscores that investors continue to view ETH as a safe haven asset.
Metrics Signal Growing Momentum for Ethereum
Analysis of Ethereum’s broader metrics provides further insights into the asset’s performance and investor behavior. One key indicator is the growth in Ethereum’s active addresses, a metric often linked with retail investor interest.
Glassnode data shows that the number of active Ethereum addresses has steadily risen from under 500,000 in October to 531,000 as of 28th November. This upward trend indicates increased network activity, which typically correlates with increased demand and potential price appreciation.
The increase in active addresses suggests a growing number of participants interacting with Ethereum’s ecosystem, whether for transactions, decentralized applications, or staking, further strengthening the network’s fundamentals.
Another significant metric is the activity of Ethereum whales—investors conducting transactions exceeding $100,000. Data from IntoTheBlock shows that the number of whale transactions peaked at 11,210 earlier this month, reflecting increased institutional activity.
However, this figure has recently declined, with Ethereum recording 7,410 whale transactions as of November 28. While the slight decrease could indicate short-term profit-taking, the sustained activity of large-scale investors suggests continued interest and confidence in Ethereum’s long-term value proposition.
Typically, an increase in whale activity can lead to higher price volatility, while a reduction may signal consolidation or preparation for the next market move.
