Ethereum (ETH) has increased by more than 45% in the past 30 days, showing strong momentum. The decrease in ETH supply on exchanges indicates that holders are becoming more confident, moving their tokens into long-term storage.
At the same time, large investors (whales) are participating in further accumulation of ETH, adding to the optimistic sentiment in the market. With EMA moving average patterns also showing a positive trend, the market seems to be gearing up for a noteworthy phase.
Ethereum ETF funds may be approved for staking integration
Ethereum ETF funds recorded the highest daily inflow last Friday, with net inflows reaching $332.9 million, according to data from Coinglass. After five consecutive days of positive inflows, these products also recorded a weekly inflow of $466.5 million last week — the highest since their launch.
In contrast, Bitcoin ETF funds experienced a net outflow of $136.5 million last week. The recent outperformance of ETH over BTC has reinforced arguments that Ethereum is kickstarting a new altcoin season.
In a recent memo sent to investors, analysts at brokerage firm Bernstein suggested that issuers may be approved by the SEC to integrate staking into Ethereum ETF funds.
"We believe that, under the leadership of a crypto-friendly SEC of Trump 2.0, the ETH staking yield is likely to be approved," Bernstein analysts emphasized. As the Federal Reserve (Fed) begins to cut interest rates, the average staking yield of 3% for ETH will be attractive to investors and asset managers due to favorable economic conditions for ETFs, the analysts added.
With increased Ethereum on-chain activity in recent weeks, ETH staking yields could rise from 4% to 5%.
The number of active weekly addresses on Ethereum has increased by over 25% to 2.64 million in November. Blobs, the storage space for Layer 2 transactions on the main chain, have also seen multiple price explorations in November. If this trend continues and pushes staking yields higher, issuers may pressure regulators with new updated filings.
ETH supply on exchanges is decreasing
From November 3 to November 18, the supply of Ethereum on exchanges significantly increased, from 12.2 million to 12.7 million.
This upward trend indicates increasing accumulation of ETH on platforms where it can be easily sold or traded. This behavior often reflects negative sentiment, as users may be preparing to liquidate their assets to cope with market uncertainty or price expectations.
However, the decline in ETH supply on exchanges, dropping to 12.6 million on December 1, signals a potential shift in sentiment. As users withdraw ETH from exchanges, it indicates reduced selling pressure.
This move is often seen as a positive signal, as it indicates that holders are choosing long-term storage. This could be an early sign of increasing confidence in ETH price.
Whales are accumulating ETH again
Whales have started accumulating ETH again at the end of November, with notable activity beginning on November 20. This accumulation trend is significant as it reflects renewed interest from large holders who may influence the market.
This behavior often attracts attention from investors, as the actions of whales can indicate strategic moves based on future price expectations.
Monitoring ETH whales is crucial as their holdings and trading behavior can significantly impact the market. An increase in the number of "whales," as seen with the rise from 5,535 on November 20 to 5,580 — the highest since October 13 — indicates strong confidence among major investors.
This accumulation could be a positive signal for ETH price, as whales typically hold long-term, reducing circulating supply and creating upward price pressure.
ETH Price Prediction
ETH's EMA moving averages are currently trending positively, with short-term averages above long-term averages. However, the price falling below the shortest EMA indicates an immediate loss of momentum.
This signals caution, as it may indicate a weakening of the bullish trend if the price does not recover quickly.
If ETH's upward trend regains strength, it could test significant resistance levels at $3,688 and $3,763. Breaking through these points could push the price of ETH to $4,000, a price not seen since December 2021, signaling a strong bullish reversal.
On the other hand, if short-term EMA lines continue to decline and form a downtrend, the price of ETH may face a correction down to $3,255, equivalent to a potential drop of 10%.