Ethereum (ETH) is showing strong signs of a breakout after hitting a year-to-date high of $4,108 on Dec. 16. Currently trading near $4,000, ETH is just 18% shy of its all-time high of $4,891 set in November 2021. Over the past week, ETH has risen by 8%, with a 28% gain in the last month and an 82% increase year-over-year.
Adding to the bullish sentiment is a 30% surge in daily trading volume, which reached $42 billion on Dec. 17, suggesting growing momentum behind Ethereum’s rally.
Key Drivers of Ethereum’s Rally
Exchange Supply at Record Lows
ETH balances on centralized exchanges have dropped to their lowest point in 8.5 years, now at 9.2 million tokens—a 10% decrease over the past year. This trend aligns with increased withdrawals as investors shift ETH to private wallets, signaling reduced selling pressure and confidence in future price gains.
Whale Accumulation Rises
Large holders, or “whales,” are accumulating ETH at record levels. Wallets holding at least 100,000 ETH now account for 57% of the total supply, collectively owning approximately $333 billion worth of ETH. In contrast, smaller wallets have seen their holdings decline, with wallets holding under 100 ETH dropping to a four-year low.
Institutional Interest Surges
Institutional demand for Ethereum is climbing. Spot Ether ETFs have recorded seven consecutive weeks of inflows, totaling $3.7 billion. Dec. 5 alone saw $428 million in inflows—the highest single-day amount ever. This growing interest highlights confidence in Ethereum’s long-term potential.
Price Projections: How High Can ETH Go?
Analysts are divided on ETH’s potential peak.
- Bullish Predictions: Michaell van de Poppe foresees a cycle top between $15,000 and $25,000, comparing the current rally to Ethereum’s 2017 growth. Analyst Venturefounder projects a price target of $15,937 by mid-2025, citing a three-year consolidation pattern.
- Conservative Estimates: VanEck predicts a $6,000 cycle peak, while Bitwise Asset Management estimates a $7,000 top.
Ethereum is currently battling to turn $4,000 into a support level. Breaking this could set the stage for new all-time highs in the months ahead.
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