Key Points
- The altcoin industry, excluding Bitcoin, has seen an 80% increase in market cap in the past five weeks.
- Ethereum’s accumulation rate has surged, with a significant decline in centralized exchange supply.
The altcoin market has experienced significant bullish momentum in recent weeks, despite Bitcoin’s struggle to reach the anticipated $100K target. The TOTAL2 market cap, which excludes Bitcoin, has seen an impressive 80% rally in the past five weeks, reaching approximately $1.56 trillion as of December 4.
The surge in demand for altcoins has been largely driven by large-cap altcoins such as XRP, Tron, and Binance Coin. Additionally, the United States, a major player in the global economy, has indicated that it will soon implement supportive crypto regulations.
Increased Accumulation of Ethereum
Over the past few days, the accumulation rate for Ethereum has significantly increased. The overall supply of Ethereum on centralized exchanges has decreased by over 212K in the last 24 hours alone. Bitfinex crypto exchange has seen the highest outflows of Ethereum in the past week, largely driven by large-scale investors.
US spot Ethereum ETFs have continued to accumulate at a high rate in anticipation of the upcoming altseason. Furthermore, Bitcoin’s dominance has dropped by over 6% in the past three weeks, indicating that the altcoin market has made significant gains.
As per the latest market data, US spot Ethereum ETFs have seen more than $730 million in cumulative total net inflow since their inception earlier this year. As of December 3, these ETFs had total net assets of about $11.22 billion after a $132 million cash inflow on Tuesday.
Ethereum’s Future
Ethereum’s price has seen a more than 50% rally in the past four weeks, trading at approximately $3,721 at the time of writing. The large-cap altcoin, with a fully diluted valuation of about $448 billion and a daily average traded volume of over $44 billion, has retested a crucial macro resistance logarithmic trend.
As the weekly Relative Strength Index (RSI) remains above 63%, the daily RSI has been attempting to rally beyond the 70% level. A successful bullish breakout for Ethereum in the weekly time frame could result in a golden cross between the 50 and 200 Moving Averages (MA).
Crypto analyst Ali Martinez suggests that Ethereum’s price could potentially reach $6000 in the midterm and $10k in the long term. However, there is a potential downside risk that could push Ethereum’s price towards the support level above $3,300.
