Key Points
Ethereum’s Market Performance
Ethereum has yet to reach its March high of $4,000 or its all-time high of $4,891 in November 2021. Despite this, its on-chain movements and decentralized finance sector remain strong. Amid market turbulence, Ethereum is experiencing high price volatility. On Tuesday, Nov. 12, Ethereum briefly touched a four-month high of $3,444. Following this local high, the altcoin has been consolidating between $3,120 and $3,290 over the last two days.
Ethereum is currently 34% down from its all-time high. However, its fundamentals are still robust. Spot Ethereum exchange-traded funds in the U.S. have seen consecutive inflows since the U.S. elections last week. These investment products began the week with a record net inflow of $295.5 million, led by Fidelity’s FETH and BlackRock’s ETHA funds. On Wednesday, the net inflow of spot ETH ETFs was $146.9 million, bringing the total inflows to $241.7 million.
Ethereum is also witnessing an increase in whale accumulation. Large holders saw a net inflow of over 97,000 ETH, worth approximately $310 million, according to data from IntoTheBlock. This kind of accumulation often triggers fear of missing out among retail investors, leading to high price volatility before gaining steady upward momentum.
Retail investors have also been accumulating Ethereum. Ethereum recorded a net outflow from exchanges of $1.12 billion over the past week, according to ITB data. This suggests strong retail accumulation on Nov. 9, 11 and 12.
DeFi Sector and Future Predictions
The total value locked in Ethereum-based protocols increased by about $10 billion after the crypto market gained bullish momentum following Donald Trump’s win in the U.S. presidential election, according to Defi Llama data. Furthermore, the total fees collected by DeFi platforms on the Ethereum network tripled over the past seven days to $18 million. These platforms generated a total revenue of $15.5 million over the past day.
Market analysis firm, Amberdata, suggests there is an 18% chance of Ethereum reaching the $4,000 mark by the end of the year. They stated, “We’re still a long way from ETH’s all-time high. Which makes us think we may have some room to run.” The growth in ETH ETFs and increasing whale accumulation could contribute to positive Ethereum price momentum. However, it is crucial to remember that macro events could shift the market’s focus, regardless of bullish on-chain signals.
