ethereum is still struggling to reach its March high of $4,000, let alone the all-time high of $4,891 in November 2021.
ethereum (eth) on-chain movements along with its decentralized finance sector have remained strong, while the leading altcoin is experiencing high price volatility amid market turbulence.
eth briefly hit a four-month high of $3,444 on Tuesday, November 12. Following the price drop from its local high, the king altcoin has been consolidating between $3,120 and $3,290 over the past two days.
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While ethereum is still 34% below its ATH, its fundamentals remain strong.
ETF inflows
US spot eth exchange-traded funds have seen consecutive inflows since last week's US election.
Investment products began the week with a record net inflow of $295.5 million led by Fidelity's FETH and BlackRock's ETHA funds, worth $115.5 million and $101.1 million, respectively.
On Wednesday, eth spot ETFs saw a net inflow of $146.9 million, bringing total inflows to $241.7 million.
This is the first time these eth-based investment products have seen strong demand since their launch in July.
Whale accumulation
ethereum is also experiencing further whale accumulation as market participants wander into greedy conditions.
Large holders yesterday saw a net inflow of more than 97,000 eth, worth approximately $310 million, according to data provided by IntoTheBlock.
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Whale accumulation often creates fear among retail investors of missing out. This usually results in high price volatility before gaining steady upward momentum.
currency outflows
In addition to whales, retail investors have also been busy accumulating ethereum.
eth recorded a net currency outflow of $1.12 billion over the past week, ITB data shows. The large net flow ratio between holders and exchanges suggests strong retail accumulation on November 9, 11 and 12.
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Currency outflows usually lead to long-term holdings that would ultimately pave the way for consistent growth.
DeFi Growth
ethereum's DeFi sector has also been on the rise.
The total value locked in ethereum-based protocols increased by approximately $10 billion after the cryptocurrency market gained bullish momentum following Donald Trump's victory in the US presidential election, according to <a target="_blank" href="https://defillama.com/chain/ethereum” target=”_blank” rel=”nofollow”>data provided by Defi Llama.
Furthermore, the total fees charged by DeFi platforms on the ethereum network have tripled in the last seven days to reach $18 million. These protocols generated a total revenue of $15.5 million over the past day.
Reach $4,000 before 2025?
Amberdata, a market analysis company, claims that there is an 18% chance that ethereum will reach the $4,000 mark by the end of the year.
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“We are still very far from the all-time high of eth. Which makes us think that maybe we have room to run.”
Amberdata wrote in an x post.
The strong growth of eth ETFs and the increasing accumulation of whales could contribute to the positive momentum of ethereum price.
However, it is important to note that macroeconomic events could potentially shift the market's focus the other way despite bullish on-chain signals.
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