Ethereum, the second-largest cryptocurrency, has shown strong growth in the past week, with a 4% increase in the past 24 hours. Trading around $3,840, ETH reached a six-month high of $3,900 following Bitcoin’s rally above $100,000. Despite being 21% away from its all-time high of $4,891, Ethereum’s market cap has reached $463 billion with a daily trading volume of $63 billion.
One of the main factors driving Ethereum’s rally is the inflow into U.S.-based spot ETH exchange-traded funds, totaling $882.3 million since November 22. This influx mostly came from BlackRock’s ETHA fund, bringing the total inflows in Ethereum investment products to $901.3 million, despite a $3.4 billion outflow from Grayscale’s ETHE fund. Additionally, Ethereum saw an exchange net outflow of $820 million in the last week, indicating accumulation by investors and potential declining selling pressure.
Moreover, whale transactions of at least $100,000 worth of ETH reached $73 billion over the last week, indicating increased FOMO among retail investors and growing buying pressure. Ethereum’s decentralized finance sector has also been expanding rapidly, with a total value locked reaching $72.9 billion and total TVL hitting a 31-month high of $134.7 billion. Despite these positive developments, Ethereum’s Relative Strength Index remains in the neutral zone at 63, suggesting a maturing accumulation phase for the altcoin.
It is important to note that the information presented in this article is for educational purposes only and does not constitute investment advice. As Ethereum continues to show positive signs and strong growth, investors are closely monitoring its performance and market trends to make informed decisions. With increasing inflows into Ethereum investment products and growing interest in decentralized finance, the future looks promising for the leading altcoin in the cryptocurrency market.
