Altcoins suffered greatly following Bitcoin’s December 10 meltdown. Nevertheless, Ethereum has demonstrated resilience and has started to bounce back. This move contrasts with the performance of ETH for most of 2024. However, three indicators have emerged, suggesting that the recent surge in Ethereum’s price to $4,000 is just the beginning and could potentially trigger its second leg, which could reach $5,000.
Ethereum growth signals a bullish trend
Looking more closely at the Ethereum network reveals that it is experiencing high user activity levels during this altcoin season. The number of active addresses and network size have increased for months, according to data. Ethereum investors and Ethereum Set for Growth’s price have been unmoved by the recent Bitcoin meltdown.
This is the initial indication that Ethereum’s value will continue to rise. A surge in network growth also indicates that new addresses are becoming part of the network, which indicates new funding is coming into the system. An upsurge is thus very probable.
According to on-chain measurements, whales have been purchasing Ethereum over the last several weeks. The data shows that 1k to 10k ETH wallets now store between 13.2 million and 14.23 million ETH coins.
Whales and ETFs Drive Ethereum Growth
Similarly, the holdings of individuals with 10,000 to 100,000 have climbed from 24.87 million to 24.97 million. If whales buy more of a coin, they think it still has room to grow in value. Remember that some of these “whales” have held onto the coin for more than 10 years, when its value has increased from under $50 to nearly $4,000.
Third, there are indications that investors have begun to purchase spot Ethereum Set for Growth following a lackluster reception by Wall Street. According to the data, these funds have seen inflows for three weeks in a row, increasing their total net assets to $12.46 billion.
There has been a steady increase in the inflows, which now total over $1.8 billion. More capital could be attracted if the SEC approves the staking of these ETFs, which is a potential stimulus.
Ethereum Eyes $4,858 Breakout
The technical indicators point to further price gains for Ethereum in the foreseeable future. There appears to be some resistance near $4,073 on the weekly chart for the coin. It has remained below that mark on three separate occasions since March of this year if the price of Ethereum can decisively break over that level.
It will increase the likelihood of reaching its all-time high of $4,858. Ethereum Set for Growth follows a long-term cup-and-handle pattern, with a possible resistance level at $4,858. With an 82% cup depth, the coin might eventually rally to $8.845 in the long run.
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