• 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

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:

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. 

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


Recommended Content

Editors’ Picks

IRS says crypto staking should be taxed in response to lawsuit

IRS says crypto staking should be taxed in response to lawsuit

The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.

More Cryptocurrencies News
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.

More Solana News
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.

More Ethereum News
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election. 

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP