$ETH Here’s how Ethereum is getting ready for the $4k mark
Ethereum, the leading altcoin, has been showing positive signs over the last week after months of bearish consolidations.
Ethereum ETH5.51%Ethereum is up 4% in the past 24 hours and is trading around $3,840 at the time of writing. The king altcoin hit a six-month high of $3,900 on the back of Bitcoin’s BTC6.17%Bitcoin rally above the $100,000 threshold early Thursday.
At this point, Ethereum is 21% away from its all-time high of $4,8
91 in November 2021.
The second-largest cryptocurrency reached a market cap of $463 billion as its daily trading volume increased by 46% to $63 billion.
What’s driving the ETH rally?
There are many factors driving Ethereum upwards, creating strong buying pressure.
Most notably, the U.S.-based spot ETH exchange-traded funds recorded eight days of consistent inflows. According to data provided by Farside Investors, spot Ethereum ETFs saw a net inflow of $882.3 million since Nov. 22, mostly coming from BlackRock’s ETHA fund.
This brought the total inflows into these investment products to $901.3 million despite a $3.4 billion outflow from Grayscale’s ETHE fund.
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.
The on-chain movement suggests that investors have been accumulating the asset. Considering that 74% of Ethereum holders have held onto their assets for over a year, per ITB data, the leading altcoin could potentially see declining selling pressure.
Data from ITB shows that whale transactions consisting of at least $100,000 worth of ETH reached $73 billion over the last week.
Growing whale activity usually triggers signs of FOMO (fear of missing out) among retail investors, consequently increasing buying pressure due to greedy market conditions.
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