- Ethereum faces $4,000 resistance, but whale accumulation and ETF inflows signal potential price growth in the near term.
- Ethereum’s DeFi ecosystem dominates, with a 36% rise in total value locked, outperforming the next ten chains combined.
- On-chain metrics show Ethereum’s steady growth with over 123 million addresses and a significant accumulation below $4,000.
Ethereum, the second-largest cryptocurrency by market capitalization, has struggled to break past the $4,000 resistance level. Over the last three weeks, ETH faced repeated rejections despite positive momentum. As of now, Ethereum trades at $4,008.
Bitcoin’s Surge Fuels Optimism for Ethereum
Ethereum’s performance often correlates with Bitcoin’s price movements. Recently, Bitcoin reached a record high, creating optimism that altcoins like Ethereum could follow suit. This correlation suggests Ethereum could soon break its resistance level.
Significantly, spot Ethereum Exchange-Traded Funds (ETFs) have seen sustained inflows over the past 17 days. These ETFs have collectively garnered over $2.3 billion, with Grayscale and BlackRock holding substantial market shares. This trend underscores rising institutional interest in Ethereum, bolstering confidence in its price stability and future gains.
On-Chain Metrics Highlight Growing Adoption
Ethereum’s on-chain metrics indicate steady adoption and robust activity. Active addresses remain steady at around 600,000, while total addresses have surged to over 123 million. Moreover, whale accumulation continues, with data showing 90 accounts holding between 100,000 and 1 million ETH tokens and 966 addresses holding between 10,000 and 100,000 coins.
Additionally, accumulation has intensified below the $4,000 mark. Data reveals that 7.2 million ETH tokens were purchased just under this threshold. Recent transactions include a whale moving 16,000 ETH, valued at $64 million, from Binance to a custodial wallet. These actions indicate increasing confidence among major holders.
Ethereum’s DeFi Ecosystem Leads the Market
The decentralized finance (DeFi) ecosystem on Ethereum continues to expand. Its total value locked (TVL) has jumped by 36%, reaching $79 billion. Notably, Ethereum’s DeFi protocols collectively hold more assets than the next ten blockchain networks combined, reinforcing Ethereum’s dominance in this sector.
Ethereum’s weekly chart reveals a bullish trend, with the price consistently staying above the 50-week and 100-week moving averages. However, a triple-top pattern has formed near the $4,000 resistance, typically a bearish indicator. Even so, the price remains between the middle line and the first resistance level of Andrew’s pitchfork tool.
DISCLAIMER:
The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
