Ethereum, the most popular altcoin has shown positive signs in the past week, after months of consolidation.
EthereumETH() has gained 4% over the last 24 hours, and currently trades at around $3840. On the back of Bitcoin (BTC( rally above the $100,000 threshold On Thursday morning,
Ethereum’s all-time highest price of $4,891 is still 21% off.
Second-largest crypto reached $463 billion market cap as daily trading volumes increased 46%, to $63 Billion.
What is driving the ETH rally?
Many factors drive Ethereum The price of goods increases, increasing the buying power.
The U.S.-based exchange-traded fund for spot ETH has seen consistent flows of money over eight consecutive days. According to data According to Farside Investors’ data, the net flow of spot Ethereum ETFs has been $882.3 millions since November 22, mainly coming from BlackRock ETHA.
Grayscale ETHE’s fund saw a $3.4B outflow, bringing the total investment into these products up to $901.3M.
Moreover, Ethereum registered an exchange net outflow of $820 million in the last seven days — recording a one-month high outflow of $385 million on Dec. 4 alone — according to data from the analytics platform IntoTheBlock.
Investors have been building up the asset, as evidenced by on-chain activity. According to ITB, 74% of Ethereum owners have kept their coins for more than a year. This could mean that the top altcoin is experiencing a decline in selling pressure.
ITB’s data indicates that whale transactions, defined as those involving at minimum $100,000 of ETH in value, totaled $73 billion dollars over the course of the week.
Retail investors are often triggered by FOMO (fear to miss out), which increases their buying pressure because of greedy market conditions.
Ethereum’s Decentralized Finance sector is also growing rapidly. According to a report published by crypto.news on Wednesday, Ethereum’s total DeFi value has been locked at $72.9 billion. TVL touched a 31-month high There are 134.7 billion dollars.
Ethereum’s Relative Strength Index remains at neutral, hovering around 63. The leading altcoin is in a phase of maturing, similar to digital gold.
Disclosure: The article is not intended to be investment advice. All content on this site is for educational use only.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: crypto.news
