Tracking Ethereum’s price alongside daily percentage changes showed that over the year, ETH experienced significant volatility, with sharp spikes in both positive and negative daily changes.
Notably, recent weeks showed increased positive momentum, suggesting heightened activity and optimism among traders.
This pattern of sudden surges in positive daily changes, especially with recent peaks, indicated ETH was building momentum towards a potential new all-time high.
Given the trend of recovering prices accompanied by bursts of positive percentage changes, Ethereum could be positioning itself for a significant rally.
The analysis suggested that Ethereum had potential to hit and break previous price records.
Balance on Accumulation Addresses
A further look into comparative analysis of Ethereum and Bitcoin’s accumulation addresses revealed intriguing similarities and scale differences.
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For Ethereum, the balance held on accumulation addresses steadily increased, and as of press time, stood at about 19.5 Million ETH, the price of which equates to approximately $78 Billion.
The consistent uptrend in the total ETH accumulated, mirroring Ethereum’s growing market presence and investor confidence over the years.
In contrast, Bitcoin’s accumulation addresses contain about 2.8 Million BTC, valued around $280 Billion. This was a higher dollar value compared to Ethereum, by nearly four times.
However, it’s crucial to note that Bitcoin’s market capitalization was also roughly four times that of Ethereum, which explains the proportional difference in the USD value held in accumulation addresses.
Both grew in the number of coins held, suggesting a strong holding sentiment for both Layer 1 (L1) cryptos.
This accumulation behavior indicated that despite different market caps, holding in anticipation of value appreciation was quite similar between the two leading cryptocurrencies.
This could be seen as a bullish signal, as long-term holders typically stabilize and can drive up market prices through reduced available supply.
Ethereum ETF Flow
The historical netflow trend for various Ethereum ETFs (ETHA, ETHE, etc.), highlightd significant inflows and outflows over recent months.
A pattern of sharp spikes in inflows indicated substantial buying pressure, particularly on specific days. Notable inflows include $1,100M on November 11, 2024, and others like $754M and $883M later in the month.
The presence of these substantial inflows suggested increased investor confidence and substantial capital entry points into the Ethereum market.
This activity indicated the growing interest and possibly a bullish outlook for Ethereum, aligning with broader market trends and investor sentiment.
This further signaled a positive market reception and could hint at an optimistic future trajectory for Ethereum prices.
Historical Pattern and Net Taker Volume
Additionally, the percentage change of Bitcoin and Ethereum during the 2021 bull run showed substantial growth for both, but their peaks and timing differed significantly just like in this moment.
BTC reached its highest point in March 2021, marking an approximate increase of 480%. In contrast, ETH peaked later in May 2021, boasting a more bigger rise of 1,114%.
The historical pattern has been Ethereum typically peaking after Bitcoin, experienced a higher percentage increase.
This delay and heightened peak could indicate Ethereum’s market response time and investor sentiment dynamics, differing from Bitcoin’s.
In the current cycle, Ethereum has notably underperformed compared to Bitcoin. This suggests a potential shift in market dynamics where the factors that drove Ethereum’s previous outperformance may not be as influential.
This could be the reason the Net Taker Volume saw a record of -400 million that revealed selling pressure, correlating with price declines.
The extreme sell-off, unseen even during previous declines, could suggest a capitulation stage.
Historically, such patterns were evident before major recoveries, such as before Ethereum’s peak in May 2021.
Despite the current aggressive selling indicating short-term bearish sentiment, the historical context suggested potential for a rebound if similar conditions align, pointing to a possible accumulation phase before another upward trend.
Throughout the timeline, a distinct correlation was visible where spikes in positive net taker volume tend to align with price increases, suggesting buying pressure and vice versa.
