Ethereum price stalled at $4,000
Ethereum has recently seen a strong rebound after the U.S. election, with the price climbing to $3,446, a four-month high and a gain of 20%. However, it is still 34% away from the all-time high of $4,891 set in November 2021, and is currently consolidating due to profit-taking pressure.
According to market data, Ethereum is currently consolidating in a range of $3,120 to $3,290. It is worth noting that according to the on-chain analysis company Spot On Chain, it has been observed that large investors including Justin Sun have begun to take profits in the recent rebound. Among them, Justin Sun deposited 19,000 ether coins into the HTX exchange. In addition, two other large investors deposited a total of 11,286 Ethereum coins, worth approximately US$36 million, to the Binance exchange, reflecting the growing profit-taking atmosphere in the market.
Source: Spot On Chain Justin Sun took profits by selling Ethereum during the recent rebound.
Four major bullish factors support market outlook
Despite short-term resistance, analysts pointed out that the following five factors still support the development of Ethereum:
1. ETF funds continue to flow in:
According to data from Farside Investors, Ethereum spot ETFs have continued to record net inflows of funds since the U.S. election, with net inflows reaching US$534 million in a single week, of which Fidelity's FETH and BlackRock ETHA funds attracted US$199 million and US$306 million respectively. . Notably, this is the first time these Ethereum investment products have seen such strong demand since their launch last July.
Click here to see more information about (Ethereum ETF).
Source: Farside Investors Ethereum ETF saw huge inflows of funds last week
2. Large investors actively accumulate:
According to IntoTheBlock data, large investors have recently seen a net inflow of more than 97,000 Ethereum coins, worth approximately US$298 million, showing that institutional investors still have confidence in Ethereum. One eye-catching case is that a large wallet has recently accumulated approximately 18,049 Ethereum coins. This large-scale accumulation often triggers a follow-up effect in the market.
3. Exchange fund outflow:
Ether has seen a net outflow of $1.12 billion from exchanges over the past week, reflecting retail investors' continued accumulation of holdings and a preference for long-term holdings. According to data from IntoTheBlock, retail investors’ willingness to accumulate was particularly strong on November 9, 11, and 12. This sustained capital outflow usually indicates stable upward momentum.
4. The DeFi ecosystem is booming:
According to data from DefiLlama, the total value locked (TVL) of the DeFi protocol in the Ethereum ecosystem increased by approximately US$10 billion after the US election (to US$59.25 billion as of the time of writing), and the protocol fee income in the past day was approximately US$5.56 million. . It is particularly worth mentioning that these protocols generated a total revenue of $4.32 million in the past 24 hours alone, showing that the activity of the ecosystem continues to increase.
Ethereum’s market outlook, are there still opportunities for ATH?
Market analyst Amberdata estimates that the chance of Ethereum breaking through the $4,000 mark before the end of 2024 is about 18%. The agency posted on the social platform
In terms of technical indicators, the Moving Average Convergence Divergence indicator (MACD) shows that although the MACD line remains above the signal line, the histogram shows a flat trend, suggesting that the upward momentum may be weakening. Meanwhile, the Bullish Bear Power (BBP) indicator is also showing signs of moderating after recent gains, suggesting that current bullish strength may not be enough to break above the $4,000 mark.
Analysts remind that although the indicators on the Ethereum chain are currently positive, including strong ETF capital inflows, continued accumulation of large investors, and the booming development of the DeFi ecosystem, overall economic events may still affect market trends, and investors still need to carefully assess risks. .
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
"Will Ethereum break through 4000 mg?" Analyst: 4 data shows that the market outlook is strong, are there opportunities for ATH? 』This article was first published in "CryptoCity"
