What’s Next for ETH’s Price?
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, appears to be attracting attention as analysts look for market indicators that indicate where ETH may be heading next.
Latest data from CryptoQuant highlights patterns of accumulation and exchange-traded fund (ETF) inflows, detailing Ethereum’s potential trajectory Underperformance relative to Bitcoin in the current cycle.
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Analyze accumulation and ETF inflow trends
in a series of Post CryptoQuant analysts shared key Ethereum indicators on social media platform X. One of the notable observations is Ethereum’s balance Cumulative address. These addresses currently hold approximately 19.5 million ETH, worth approximately $78 billion.
By comparison, Bitcoin cumulative addresses hold approximately 2.8 million BTC worth $280 billion. While the dollar value of Bitcoin holdings is four times that of Ethereum, this is consistent with their relative market caps, Insight into investor behavior.
Another key metric that has gained attention is the steady inflow into Ethereum-focused ETFs over the past few months. There were notable spikes on several key dates, including $1.1 billion on November 11 and $839 million on December 4, 2024.
According to CryptoQuant analysts, these continued inflows are a strong indicator of institutional buying interest, reinforcing Ethereum’s growing appeal among investors large investors.
Ethereum ETF funds have continued to flow steadily in recent months.
Key peaks:
November 11, 2024: $1.1 billion
November 21, 2024: $754 million
November 25, 2024: $629 million
November 27, 2024: $883 million
December 4, 2024: $839 millionThese inflows reflect strong buying pressure. pic.twitter.com/OIwWNmRPYB
— CryptoQuant.com (@cryptoquant_com) December 10, 2024
Despite strong ETF demand, Ethereum’s price action has not been as dramatic compared to Bitcoin’s performance this cycle. Historically, Ethereum’s price peaks have lagged behind Bitcoin’s, as seen during the 2021 bull run.
At the time, Bitcoin had hit an all-time high (ATH) in March with a gain of 480%, while Ethereum had peaked a few months later with gains of around 1,114%. However, Ethereum appears to be underperforming during the current cycle, signaling a shift in market dynamics.
Number of recipients and potential growth
Additionally, one important area mentioned by analysts is the number of Ethereum takers, which reflects market sentiment through more aggressive buying and selling activity.
CryptoQuant reports that Ethereum’s buyer-seller transaction volume has hit an all-time low of -400 million. This aggressive selling activity is reminiscent of the pattern observed before the 2021 peak. While the current selling pressure may seem pessimistic, it could also be a sign that the market is approaching key pivot point.
Ethereum taker transaction volume is at its lowest level on record.
Ethereum’s price weakness is due to heavy taker-seller volume, currently at an all-time low of -400 million, indicating aggressive selling.
A similar pattern occurred before Ethereum peaked in May 2021. Still, it’s possible… pic.twitter.com/OmRYvAzjxI
— CryptoQuant.com (@cryptoquant_com) December 10, 2024
Analysts stressed that Ethereum’s poor performance this cycle does not rule out the possibility of significant growth.
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The interplay between accumulation patterns, ETF inflows, and taker volume suggests that Ethereum may still have room for upward momentum.
Featured image created using DALL-E, chart from TradingView
