Originally published on: December 17, 2024
Ether (ETH) is on the verge of surpassing its all-time high soon as it reached a new year-to-date peak of $4,108 on December 16th, showcasing an impressive 8% increase over the past week. This second-largest cryptocurrency by market capitalization has surged by 28% in the last 30 days and a remarkable 82% over the past year.
Trading data from Cointelegraph Markets Pro and TradingView indicates that ETH is currently trading at $4,000, just 18% below its previous all-time high of $4,891 set on November 26, 2021.
Accompanying the recent price surge of ETH is a 30% spike in daily trading volume, which stands at $42 billion. This surge in volume indicates strong momentum behind the rally.
Despite the upward trajectory, the question remains – how high can the price of Ether go? Factors such as decreasing supply on exchanges, a spike in accumulation by large holders, and a surge in the number of new Ethereum addresses hint at a potentially bullish future for ETH.
Data from CryptoQuant reveals that ETH balances on exchanges have dropped to an 8.5-year low of 9.2 million ETH, showcasing a 10% decrease over the past year. This decline in supply on exchanges coincides with a 73% rise in Ether’s price over the same period.
Large holders, also known as whales, have been accumulating ETH, with whale wallet holdings reaching record levels. Furthermore, daily averages of new Ethereum addresses have hit an eight-month high in December, indicating growing interest in the cryptocurrency.
The derivatives market also reflects bullish sentiment towards ETH, with total open interest in Ethereum jumping to an all-time high of 20.7 billion ETH on December 17. This surge in open interest suggests increased demand for leveraged ETH positions and new money entering the market.
Institutional interest in Ether is also on the rise, with spot Ether exchange-traded funds (ETFs) recording positive inflows every day since November 22. This influx of institutional funds indicates a positive sentiment towards ETH.
Crypto analysts have differing opinions on how high Ethereum’s price can go, with some projecting price targets above $15,000. While some experts predict a cycle top around the $6,000 mark, others anticipate more conservative price targets.
In conclusion, the future of Ethereum’s price remains uncertain, but the current bullish momentum suggests that ETH is poised for further gains in the near future. Investors should conduct their own research before making any investment decisions.