Originally published on: December 17, 2024
Ethereum’s price surge continues as it eyes breaking its all-time high after reaching a new year-to-date peak of $4,108 on December 16. With an 8% gain over the past week, Ether (ETH) is making significant moves in the cryptocurrency market. The second-largest crypto by market capitalization has surged by 28% in the last 30 days and an impressive 82% over the past year.
Data from Cointelegraph Markets Pro and TradingView indicates that ETH is currently trading at $4,000, just 18% below its all-time peak of $4,891 set on November 26, 2021. The cryptocurrency’s rally is accompanied by a 30% increase in daily trading volume, now standing at $42 billion, suggesting strong momentum.
With Ether investment products witnessing continuous inflows and other fundamental factors driving its growth, the question arises: How high can ETH’s price go?
One key factor supporting Ethereum’s upward trajectory is the decreasing supply on exchanges. Data from CryptoQuant shows that ETH balances on exchanges have dropped to an 8.5-year low of 9.2 million ETH, down almost 10% over the past year.
The diminishing supply on exchanges coincides with a surge in accumulation by large holders. Whale wallet holdings have hit an all-time high, representing around 57% of all ETH in circulation.
According to Santiment, the number of new Ethereum addresses reached an eight-month high in December, reflecting growing interest in the cryptocurrency. Additionally, total open interest in the derivatives market has surged to an all-time high of 20.7 billion ETH, indicating increased demand for leveraged ETH positions.
Spot Ether exchange-traded funds (ETFs) in the United States have seen positive inflows since November 22, with record-breaking inflows on December 5. This influx of capital into Ether ETFs demonstrates investor confidence in the cryptocurrency.
Experts are divided on Ethereum’s potential price targets, with some predicting a climb to $15,000 while others are more conservative in their estimates. Despite varying opinions, the overall sentiment towards ETH remains bullish.
As Ethereum continues its rally, breaking the $4,000 resistance level could pave the way for new all-time highs. Analysts suggest that the cryptocurrency is poised for a substantial upward trend, with price targets ranging from $6,000 to as high as $15,000.
While the future price of Ethereum remains uncertain, investors are optimistic about its growth potential. As always, it’s essential to conduct thorough research and consider the risks involved before making any investment decisions.
