Ethereum (ETH), the second-largest cryptocurrency by market capitalization, appears to be gaining attention as analysts watch market metrics that indicate ETH’s possible next move.
Recent data from CryptoQuant has highlighted patterns in exchange-traded fund (ETF) accumulation and inflows, providing a detailed look at Ethereum’s potential trajectory moving forward. underperforms Bitcoin in the current cycle.
Analysis of trends in ETF accumulation and inflows
In a series of publications Shared on social media platform X, CryptoQuant analysts analyzed key Ethereum metrics. One of the most notable observations was the balance of Ethereum in accumulation directions. These addresses now contain approximately 19.5 million ETH, valued at around $78 billion.
For comparison, Bitcoin accumulation addresses contain around 2.8 million BTC, worth $280 billion. While Bitcoin’s dollar value is four times that of Ethereum, this aligns with their relative market capitalizations, offering Information on investor behavior..
Another critical metric highlighted was the steady inflow into Ethereum-focused ETFs over the past few months. Notable spikes were recorded on several key dates, including $1.1 billion on November 11 and $839 million on December 4, 2024.
According to CryptoQuant analysts, these steady inflows are a strong indicator of institutional buying interest, reinforcing Ethereum’s growing appeal among large scale investors.
The Ethereum ETF has seen steady inflows in recent months.
Key peaks in:
November 11, 2024: $1.1 billion
November 21, 2024: $754 million
November 25, 2024: $629 million
November 27, 2024: $883 million
December 4, 2024: $839 millionThese entries reflect strong buying pressure. pic.twitter.com/OIwWNmRPYB
– CryptoQuant.com (@cryptoquant_com) December 10, 2024
Despite strong demand for ETFs, Ethereum’s price movements have been less dramatic compared to Bitcoin’s performance this cycle. Historically, Ethereum’s price peaks have followed those of Bitcoin, as seen during the 2021 bull run.
At that time, Bitcoin hit an all-time high (ATH) in March with a gain of 480%, while Ethereum peaked a few months later with a gain of about 1,114%. However, in the current cycle, Ethereum appears to be underperforming, indicating a change in market dynamics.
Participant volume and potential growth
Additionally, a major area of ​​concern that analysts mentioned is the volume of Ethereum buyers, which reflects market sentiment when comparing aggressive buying and selling activity.
CryptoQuant reported that Ethereum buyer-seller volume hit an all-time low of -400 million. This aggressive selling activity is reminiscent of patterns seen prior to its ATH in 2021. While the current selling pressure may appear bearish, it could also indicate that the market is approaching a plateau. critical pivot point.
Ethereum Taker volume is at its lowest level on record.
Ethereum price weakness is due to high volume of buyers-sellers, now at an all-time low of -400 million, indicating aggressive selling.
A similar pattern occurred before Ethereum’s peak in May 2021. Despite this, it is still possible that… pic.twitter.com/OmRYvAzjxI
– CryptoQuant.com (@cryptoquant_com) December 10, 2024
Analysts emphasized that Ethereum’s poor performance in this cycle does not exclude the possibility of significant growth.
The interplay between accumulation patterns, ETF inflows, and buyer volume suggests Ethereum could still have room for bullish momentum.
Featured image created with DALL-E, TradingView chart
Fountain: NewsBTC.com
