🌎 Ethereum Reaches Six Month High

Ethereum Price Surges, Reaching Six-Month High

Ethereum, the leading altcoin, has shown significant growth over the last week, breaking a months-long bearish consolidation pattern. Ethereum’s price increased by 4% in the past 24 hours, reaching a six-month high of $3,900, driven by Bitcoin’s rally above the $100,000 threshold.

At the time of writing, Ethereum is trading around $3,840, up 3.4% from its previous value. This growth brings Ethereum 21% closer to its all-time high of $4,891, reached in November 2021. The second-largest cryptocurrency’s market cap has also increased to $463 billion, with its daily trading volume surging by 46% to $63 billion.

Drivers of the Ethereum Rally

Several factors are contributing to the Ethereum price surge, creating strong buying pressure. One key factor is the consistent inflows into U.S.-based spot Ethereum exchange-traded funds (ETFs). Over the past eight days, these investment products have seen a net inflow of $882.3 million, with the majority coming from BlackRock’s ETHA fund.

This influx of investments has brought the total inflows into spot Ethereum ETFs to $901.3 million, despite a $3.4 billion outflow from Grayscale’s ETHE fund. Additionally, Ethereum has registered a net outflow of $820 million from exchanges over the last seven days, reaching a one-month high outflow of $385 million on December 4.

According to data from the analytics platform IntoTheBlock, this on-chain movement suggests that investors have been accumulating Ethereum assets. With 74% of Ethereum holders having held onto their assets for over a year, the leading altcoin may potentially experience declining selling pressure.

Whale Activity and DeFi Growth

Another factor contributing to the Ethereum price surge is the growing whale activity. Whale transactions consisting of at least $100,000 worth of ETH have reached $73 billion over the last week. This increased whale activity often triggers signs of FOMO (fear of missing out) among retail investors, leading to increased buying pressure due to greedy market conditions.

Furthermore, Ethereum’s decentralized finance (DeFi) sector has been growing at a strong pace. The total value locked (TVL) in Ethereum’s DeFi sector has reached $72.9 billion, with the total TVL touching a 31-month high of $134.7 billion.

Relative Strength Index (RSI) Analysis

Despite the price hike, Ethereum’s Relative Strength Index (RSI) remains within the neutral zone, currently sitting at 63. This suggests a maturing accumulation phase for the leading altcoin, following the path of digital gold.

Stay up-to-date with the latest cryptocurrency news on Global Crypto News.