Ethereum has encountered resistance at the $4,000 mark, stalling its recent momentum, but several positive catalysts and on-chain metrics suggest further upside potential in the near term.
Currently trading at $4,008, Ethereum, the second-largest cryptocurrency by market capitalization, has struggled to maintain upward momentum for three consecutive weeks. Despite this, key indicators point to a potential breakout. One such catalyst is Bitcoin, which has reached a new all-time high this week. As Bitcoin’s price rises, altcoins like Ethereum often follow suit, providing a boost to ETH’s price action.
Ethereum spot ETFs are also seeing strong inflows, continuing a trend that may persist over the coming months. Cumulative inflows have surpassed $2.3 billion, with major players like Grayscale and BlackRock capturing a significant market share. Ethereum ETFs have seen inflows for 17 consecutive days, signaling growing institutional confidence.
On-chain data reveals that Ethereum’s network activity remains robust. The number of active addresses has stabilized just under 600,000, while the total number of Ethereum addresses has surpassed 123 million, according to IntoTheBlock. Furthermore, Ethereum whales continue to hold large amounts of ETH, with 90 accounts holding between 100,000 and 1 million ETH, and 966 accounts holding between 10,000 and 100,000 ETH.
Accumulation trends also indicate strong demand below the $4,000 price level, with 7.2 million ETH purchased just below that threshold. Notably, one Ethereum whale recently moved 16,000 ETH (worth $64 million) from Binance to a custodial wallet, part of a series of similar transactions in recent weeks.
Ethereum’s decentralized finance (DeFi) ecosystem is thriving, with its total value locked (TVL) rising by 36% to $79 billion. Ethereum’s DeFi protocols now hold more assets than the next ten blockchains combined, underscoring its dominance in the sector.
Despite the resistance at $4,000, Ethereum’s strong fundamentals, ongoing accumulation, and the continued growth of its DeFi ecosystem position it for potential gains in the near future.
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