Could Ethereum Soon Reach the $4,000 Milestone? Reviewing Positive Signals for ETH
Ethereum (ETH) seems poised to break free from its recent period of inactivity, possibly gearing up for a substantial upward momentum. The current trading price for Ethereum stands at $3,558, reflecting a 20% surge over the last fortnight, showcasing a renewed interest among investors. Despite a 1.4% dip in the past 24 hours, Ethereum continues to hold above the critical support level of $3,500, underscoring its resilience in the market.
Amidst this upward trend, experts have identified several indicators that bode well for Ethereum’s growth trajectory. TheKriptolik, a CryptoQuant analyst, highlighted key trends emphasizing Ethereum’s enduring appeal to major players. Despite lower price levels compared to previous peaks, the ETH Exchange Supply Ratio has dropped to levels last observed in 2016, implying a shift of holdings off exchanges for potential long-term accumulation, reinforcing Ethereum’s status as a safe-haven asset.
Positive Trends Supporting Ethereum’s Momentum
Delving deeper into Ethereum’s metrics unveils further insights into its performance and investor sentiment. Notably, the increase in active Ethereum addresses, a metric associated with retail investor engagement, has been on a steady rise, climbing from under 500,000 in October to 531,000 by November 28th, according to Glassnode data.
This surge in active addresses signals heightened network utilization, often correlating with increased demand and potential value appreciation. The growing participation in Ethereum’s ecosystem, whether for transactions, decentralized applications, or staking, bolsters the network’s fundamentals, highlighting its growing relevance.
Another important metric to consider is the behavior of Ethereum whales—investors involved in transactions exceeding $100,000. Data from IntoTheBlock indicates that the number of whale transactions peaked at 11,210 earlier this month before slightly decreasing to 7,410 by November 28.
While this decline may hint at short-term profit-taking, the sustained interest from institutional investors underscores confidence in Ethereum’s long-term value proposition. A surge in whale activity could lead to increased price volatility, whereas a drop might signal a phase of consolidation or preparation for the next market movement.
In conclusion, the confluence of these positive indicators suggests that Ethereum is on a promising trajectory towards potential growth and value appreciation in the near future.