Key Points
- Ethereum (ETH) price has broken out of a multi-year consolidation following a surge in Spot Ether ETFs cash inflows.
- Whales are accelerating their accumulation of Ethereum, with the ecosystem registering significant cash inflows.
Ethereum’s price has shown signs of a significant bullish breakout. This comes amidst the increased volatility of Bitcoin after it hit $100k for the first time. Ethereum, the leading altcoin with a fully diluted valuation of approximately $465 billion and a daily average traded volume of about $54 billion, has been steadily increasing since the November rebound.
From a technical perspective, Ethereum’s price is well-positioned for a rally towards its all-time high in the coming weeks. Additionally, the ETH/USD pair has successfully broken out of a multi-year symmetrical triangular pattern on the weekly time frame.
Increasing Accumulation of Ethereum
The recent surge of large-cap altcoins, led by Ripple Labs’ XRP, and Binance Coin (BNB), has accelerated the whale’s adoption of Ethereum. Ethereum has the largest web3 ecosystem, with a total value locked (TVL) of about $76 billion and a stablecoins market cap of more than $104 billion.
In the past five weeks, the Ethereum ecosystem has seen significant cash inflows through the US spot Ether ETFs, amounting to about $1.8 billion. The US spot Ether ETFs registered the highest cash inflow of about $428 million on Thursday. Notably, BlackRock’s ETHA, Fidelity’s FBTC, and Grayscale’s ETH led in net cash inflows of about $292 million, $113 million, and $30 million respectively.
Anticipating Altseason
With Ethereum’s price signaling an imminent bull run towards an all-time high and market discovery, most altcoins are gearing up for a similar move. The TOTAL2 market cap, excluding Bitcoin, is currently retesting the 2021 all-time high, with the bulls already in control.
Global leaders, led by the US President-elect Donald Trump, are heavily invested in the cryptocurrency industry as a means to stimulate economic growth. Consequently, it is advisable for crypto investors to position their portfolios in the best way possible to maximize gains in the coming months.
