Originally published on: December 17, 2024
Ethereum (ETH) is on the verge of surpassing its previous all-time high as it reached a new year-to-date peak of $4,108 on December 16th.
In the past week, ETH has seen an 8% increase, with a 28% surge over the last 30 days and an impressive 82% growth over the past year.
Trading data reveals that Ether is currently priced at $4,000, standing at about 18% below its record high of $4,891 set on November 26, 2021.
The upward trend in Ether’s price is accompanied by a significant 30% rise in daily trading volume, reaching $42 billion, indicating a strong bullish momentum in the market.
Amidst increasing investment in Ether products and positive onchain metrics, the question arises – how high can the price of ETH go?
One key factor supporting the bullish case for Ether is the decreasing supply of ETH on exchanges. Data from CryptoQuant shows that ETH balances on exchanges have dropped to an 8.5-year low of 9.2 million ETH, signaling a 10% decrease over the past year.
The diminishing supply on exchanges can be attributed to a rise in accumulation by large holders, with whale wallet holdings now at a historic high, representing 57% of all circulating ETH.
Moreover, the number of new Ethereum addresses created each day has hit an eight-month high, indicating growing interest in the cryptocurrency.
In the derivatives market, the total open interest in Ether has surged to an all-time high of 20.7 billion ETH, showcasing an increased demand for leveraged positions in Ether.
Additionally, spot Ether exchange-traded funds (ETFs) in the US have seen consistent inflows since November, with record-breaking inflows exceeding $428 million on December 5.
Overall, Ether exchange-traded products (ETPs) have witnessed substantial inflows in recent weeks, totaling $3.7 billion.
Analysts predict a bullish outlook for ETH, with some projecting price targets above $15,000 in the coming months.
While some expect a cycle top around $15,000 to $25,000, others offer more conservative estimates. VanEck anticipates a $6,000 cycle top for Ether, while Bitwise Asset Management predicts a price target of $7,000 for ETH by 2025.
As Ether continues to show strength and resilience in the market, investors are eager to see whether it can break the key resistance level of $4,000 and reach new all-time highs.
Disclaimer: This article does not constitute investment advice. Readers are advised to conduct their own research before making any financial decisions.