- Ethereum on-chain metrics signal peak accumulation by large wallet holders, traders are bullish on the altcoin.
- Analysts believe that altcoin is bootstrapping the metaverse through the NFT projects built on the Ethereum network.
- $113 million worth of ETH has been burned since London Hard Fork on OpenSea, a peer-to-peer NFT marketplace.
Cryptocurrency market capitalization has hit $2.38 trillion overall as Ethereum’s dominance rises to 20%. The altcoin has posted over 400% gains since the beginning of 2021.
Ethereum accumulation by whales likely to push ETH to all-time high
Addresses holding Ethereum for over a year have increased consistently, hitting all-time high levels. This implies that the outlook among long-term holders is still bullish. Interestingly, few active wallets are holding Ethereum between $3500 and $3800 level.
Analysts expect inactive wallet addresses to resist selling or exchanging their holdings in the short term. This reduces the selling pressure on exchanges, offering the altcoin further room for its upward climb.
In/Out of the Money: Ethereum.
Despite increased competition from NFT projects on Ethereum alternatives like Solana and Cardano, analysts still consider ETH to be powering the metaverse. Pseudonymous analyst @iamDCinvestor tweeted:
people selling fiat, to buy ETH, to buy NFTs, to earn more ETH, to keep it and use it in DeFi, and buy even more NFTs, (etc.)
— DCinvΞstor (@iamDCinvestor) September 3, 2021
you are participating in the bootstrapping of the new global metaverse economy,
and $ETH is its currency
The increasing popularity of NFTs, alongside the rising burn rate, is feeding the “supply shock” narrative of Ethereum. The most significant contributor to Ethereum’s burn is OpenSea, an Ethereum based peer-to-peer marketplace for NFTs. Based on data from ultrasound.money, OpenSea has contributed to burning 28,624 Ether. The burn rate has increased to hit 4.37 ETH/min.
Overall, analysts have a bullish outlook on Ethereum. Pseudonymous analyst @Thecryptomist has predicted that Ether is likely to hit $5000.
$Eth - $5k this month$BTC - $60k this month.
— The Cryptomist (@Thecryptomist) September 3, 2021
FXStreet analysts have predicted that the altcoin is likely to cross $4100 in the ongoing price rally.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.