ETH Breaks $4,000

As a seasoned crypto investor with over a decade of experience navigating this wild frontier, I can confidently say that these are exciting times for Ethereum (ETH) investors like myself. The current price action, hovering just below its 2024 high and within striking distance of its all-time peak, is nothing short of exhilarating.


Right now, the price is approximately $4,033, which is nearly 2% short of reaching a new highest point in 2024. What’s more interesting is that it’s also about 20% below its legendary all-time peak of $4,868.

In the last while, Ethereum (ETH) has not only surpassed broader cryptocurrency indices but has also outperformed Bitcoin (BTC) significantly across various periods. Over the past 24 hours, ETH has risen by 2.4%, and over the last week, it has increased by 8.4%. Furthermore, the ETH/BTC ratio has returned to 0.04, a level that was last seen as a brief high for ether on November 10. This is encouraging news for Ethereum supporters, as the ETH/BTC pair had been experiencing consistent losses since late 2022.

On Coinbase, Ethereum is being sold at a higher cost compared to Binance. This phenomenon, known as the “Coinbase premium”, frequently indicates that the buying surge is primarily from the U.S. market. This could be due to large-scale institutional investors and individual traders who prefer trading on a platform regulated in the U.S., given its reputation for security and compliance. When U.S. trading begins and there’s even a slight price difference favoring Coinbase, it often serves as an early warning sign of increased American institutional interest.

Furthermore, there has been a surge in investments towards ETFs linked to ether, reaching unprecedented levels. This trend is often seen as another sign of approval from traditional financial sectors. If you’ve been questioning whether the “institutions are joining” narrative remains valid, these increasing investment indicators could be providing an answer. Admittedly, this isn’t a new tale, but it’s no less captivating at present.

Last few days of $ETH ETF Flows have looked very strong.

Dec 5th: 429m 

Dec 4th: 167.7m

Dec 3rd: 132.6m 

Dec 2nd: 24.2m 

Nov 29th: 332.9m

As a researcher, I’ve noticed an unprecedented surge in the past few months that exceeds all previous accumulated growth combined. Prior to the election, there was virtually no significant movement. However, this trend seems to be persisting at a fraction of the Bitcoin market capitalization, suggesting there is still ample room for further growth.

Beyond the fluctuations in price and market trends, Ethereum’s on-chain activity is indicating a positive outlook as well. According to Glassnode data, active addresses on the Ethereum network have significantly increased from approximately 368,000 to a substantial 523,000 (7-day moving average) between September 24 and December 5. With more activity comes more transactions, potentially higher gas fees, and eventually more Ether being burned due to Ethereum’s fee-burning mechanism introduced with EIP-1559. This reduction in supply should not be overlooked as it forms a self-reinforcing loop: increased usage leads to more burning, a tighter supply, and potentially higher prices.

Read More

2024-12-08 10:14