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Ethereum (ETH), the second largest cryptocurrency by market capitalization, appears to be attracting attention as analysts observe market metrics that indicate the next possible move for ETH.
Recent data from CryptoQuant has highlighted trends in exchange-traded fund (ETF) accumulation and inflows, providing detailed insight into Ethereum’s potential trajectory as it underperforms against Bitcoin in the current cycle.
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Analyze trends in ETF accumulation and inflows
In a series of posts shared on social media platform X, CryptoQuant analysts analyzed key Ethereum metrics. One of the most notable observations was Ethereum’s balance in accumulation addresses. These addresses now hold approximately 19.5 million ETH, valued at approximately $78 billion.
For comparison, Bitcoin accumulation addresses hold approximately 2.8 million BTC, worth $280 billion. Although the dollar value of Bitcoin held is four times that of Ethereum, this corresponds to their relative market capitalizations, providing insight into investor behavior.
Another critical indicator highlighted has been the steady influx of 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 consistent inflows are a strong indicator of institutional investor interest, reinforcing Ethereum’s growing appeal among large-scale investors.
The Ethereum ETF has seen steady inflows in recent months.
Key points on:
November 11, 2024: $1,100 million
November 21, 2024: $754 million
November 25, 2024: $629 million
November 27, 2024: $883 million
December 4, 2024: $839 millionThese inflows 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 than Bitcoin’s performance during this cycle. Historically, Ethereum’s price peaks have been lower than Bitcoin’s, as seen during the 2021 bull run.
At that time, Bitcoin hit an all-time high (ATH) in March with a 480% gain, while Ethereum peaked a few months later with an increase of around 1,114%. However, in the current cycle, Ethereum appears to be underperforming, signaling a change in market dynamics.
Volume of takers and potential growth
Additionally, a significant area of concern mentioned by analysts is Ethereum taker volume, which reflects market sentiment by comparing aggressive buying and selling activities.
CryptoQuant reported that Ethereum take-ask volume reached an all-time high of -400 million. This aggressive selling activity is reminiscent of patterns seen prior to its 2021 ATH. While the current selling pressure may appear bearish, it could also signal a market near a critical pivot point.
Ethereum Taker Volume is at its lowest level on record.
Ethereum’s price weakness is driven by high taker-seller volume, now at an all-time high of -400 million, indicating aggressive selling.
A similar trend occurred before Ethereum peaked in May 2021. Despite this, there may still be… pic.twitter.com/OmRYvAzjxI
– CryptoQuant.com (@cryptoquant_com) December 10, 2024
Analysts have emphasized that Ethereum’s underperformance during this cycle does not rule out the possibility of significant growth.
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The interplay between accumulation patterns, ETF inflows, and taker volume suggests that Ethereum may still have room to grow.
Featured image created with DALL-E, chart from TradingView
