Recent market developments are creating the right setup for an Ethereum worth breakout. Notably, ETH has been steadily gaining momentum, with its worth now edging nearer to a brand new all-time excessive. In the previous few days, the main altcoin has skilled a surge in community exercise, rising demand, and shrinking trade provide—all key drivers for a probably explosive transfer.
Network Growth Pushes Ethereum Price Toward New ATH
Ethereum is shortly approaching its earlier all-time excessive as community exercise has surged to unprecedented ranges. According to on-chain analytics agency CryptoQuant, day by day Ethereum transaction counts have climbed to a report excessive of roughly 1.875 million, underscoring a robust surge in consumer engagement and community demand.
This spike in exercise has coincided with a sharp rally within the ETH worth from round $3,150 in late July to $4,563 in August, positioning the cryptocurrency inside putting distance of its historic peak. Currently, Ethereum is buying and selling at $4,737, that means it’s only 2.67% away from surpassing its ATH of $4,867, recorded throughout the bull run in November 2021.
Over the previous month, Ethereum has maintained a sturdy upward trajectory, hovering by roughly 60% in keeping with CoinMarketCap. The momentum has solely intensified within the final week, with the cryptocurrency rallying over 27% whereas outperforming Bitcoin by 124% for the reason that market lows in April. If this bullish run persists, ETH might be on the verge of setting a contemporary ATH, marking a historic second for the crypto market.
Adding to the constructive sentiment is Ethereum’s Netflow SMA30, which CryptoQuant reveals presently sits at -40,000 ETH. Based on the chart, sustained outflows sign that buyers are shifting their holdings into chilly storage somewhat than protecting them on exchanges for fast sells, successfully decreasing sell-side liquidity and rising shopping for strain.
This development was significantly pronounced between late July and early August. On August 12, Ethereum noticed a considerable internet influx of 186,000 ETH, and on the identical day, its worth touched $4,589. This helps CryptoQuant’s narrative that ETH is quickly edging towards a brand new report excessive, pushed not solely by rising community exercise but additionally by accelerating accumulation.
Short Squeeze Risk And ETF Inflows Add To Momentum
While the ETH worth is surging, market analyst Coin Bureau warns {that a} new all-time excessive might set off a cascade of quick liquidations, probably injecting much more volatility into the market. The analyst predicts that almost $2 billion price of quick positions might be worn out, forcing merchants to purchase again the altcoin at increased costs and probably accelerating the rally.
Interestingly, Ethereum’s fast worth ascent can be being amplified by surging institutional demand. Crypto analyst Ted Pillows reported in an X social media put up that Spot Ethereum ETFs attracted a large $729.1 million in inflows in simply at some point—a sign that institutional FOMO could also be returning to the market. Alongside this ETF increase, demand from Ethereum Treasury corporations has additionally climbed sharply, reinforcing ETH’s bullish momentum.
Featured picture from iStock, chart from Tradingview.com
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