Ethereum is still struggling to reach its March high of $4,000, let alone its all-time high of $4,891 in November 2021. Despite this, Ethereum’s on-chain movements and its decentralized finance sector have remained strong. The leading altcoin is experiencing high price volatility amid market turbulence.

Price Volatility and Consolidation

ETH briefly touched a four-month high of $3,444 on Tuesday, Nov. 12. Following the price drop from this local high, Ethereum has been consolidating between $3,120 and $3,290 over the last two days. While Ethereum is still down by 34% from its all-time high, its fundamentals remain strong.

ETF Inflows

Spot ETH exchange-traded funds (ETFs) in the U.S. have been registering consecutive inflows since the U.S. elections last week. The investment products started the week with a record net inflow of $295.5 million, led by Fidelity’s FETH and BlackRock’s ETHA funds, worth $115.5 million and $101.1 million, respectively. On Wednesday, spot ETH ETFs saw a net inflow of $146.9 million, bringing the total inflows to $241.7 million. This is the first time these ETH-based investment products have seen strong demand since their launch in July.

Whale Accumulation

Ethereum is also experiencing increased whale accumulation. Large holders saw a net inflow of over 97,000 ETH, worth roughly $310 million, according to data provided by IntoTheBlock. Whale accumulation often triggers the fear of missing out among retail investors, usually leading to high price volatility before gaining steady upward momentum.

Exchange Outflows

In addition to whales, retail investors have also been busy accumulating Ethereum. ETH recorded an exchange net outflow of $1.12 billion over the past week, according to ITB data. The large holder-to-exchange net flow ratio suggests strong retail accumulation on Nov. 9, 11, and 12. Exchange outflows usually lead to long-term holding, which ultimately paves the way for steady growth.

DeFi Growth

Ethereum’s decentralized finance (DeFi) sector has also been surging. The total value locked in Ethereum-based protocols increased by roughly $10 billion after the crypto market gained bullish momentum following the U.S. presidential election results. Moreover, the total fees collected by DeFi platforms on the Ethereum network tripled over the past seven days to $18 million. These protocols generated a total revenue of $15.5 million over the past day.

Future Price Predictions

Amberdata, a market analysis firm, claims there is an 18% chance of Ethereum reaching the $4,000 mark by the end of the year. Amberdata wrote in a post, “We’re still a long way from ETH’s all-time high. Which makes us think we may have some room to run.” The strong growth in ETH ETFs and increasing whale accumulation could add to the positive Ethereum price momentum.

“We’re still a long way from ETH’s all-time high. Which makes us think we may have some room to run.”

However, it’s important to note that macro events could potentially shift the market’s focus despite bullish on-chain signals. Stay updated with the latest news and trends in the cryptocurrency world.

#Ethereum #CryptoInvestor

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