As we approach the end of 2023, the Ethereum market is heating up once again, with Ether (ETH) poised to break its all-time high in the coming days. After reaching a new year-to-date high of $4,108 on December 16, ETH price has gained an impressive 8% over the last week and 28% over the last 30 days.
Ethereum’s Price Performance
With a market capitalization of over $500 billion, Ether is currently the second-largest cryptocurrency by market value. Its price performance has been nothing short of remarkable, with a staggering 82% gain over the last year.
* ETH/USD daily chart: [source](https://www.tradingview.com/chart/?symbol=ETHUSD)
The accompanying increase in trading volume is also noteworthy, with a 30% leap in daily trading volume currently sitting at $42 billion. This surge in momentum suggests that the rally has legs and could potentially push Ether’s price even higher.
Factors Contributing to Ethereum’s Upsurge
So, what factors are driving this remarkable price action? Several indicators point towards a strong bullish trend for ETH:
Decreasing ETH Supply on Exchanges
One key factor supporting Ether’s upside is the decreasing supply of ETH on exchanges. Data from CryptoQuant shows that ETH balances on exchanges have reached an 8.5-year low of 9.2 million ETH, down nearly 10% over the last year.
* ETH supply on exchanges: [source](https://www.cryptoquant.com/)
This decrease in supply could be attributed to a surge in withdrawals from trading platforms since October 2023. The net flow to/from exchanges has seen a steep decline during this period, which coincides with a 73% rise in Ether’s price.
Ethereum Whales Accumulating ETH
The decreasing supply on exchanges can also be explained by the increasing accumulation of large holders over the last few weeks. Notably, whale wallet holdings have reached their highest level ever, accounting for about 57% of all ETH in circulation.
* Ethereum supply distribution by tiers: [source](https://www.santiment.net/)
With 104 whale wallets holding at least 100K Ethereum and collectively holding over $333 billion, it’s clear that these large holders have not sold on the latest rally but have continued to accumulate. This trend is a long-term bullish indication, especially if it continues.
New Ethereum Addresses Cross 130,200
Meanwhile, the daily average of new Ethereum addresses has crossed 130,200 in December, marking an eight-month high, according to Santiment.
* Daily average of new Ethereum addresses: [source](https://www.santiment.net/)
This increase in new addresses could be a sign of growing adoption and interest in the Ethereum ecosystem.
Analysts Set Five-Digit Targets for ETH Price
Several analysts have set ambitious price targets for Ether, ranging from $6,000 to $25,000. While these predictions are based on technical analysis and market trends, it’s essential to remember that every investment and trading move involves risk.
* ETH/USD 2W chart: [source](https://www.tradingview.com/chart/?symbol=ETHUSD)
Some notable analysts include:
- Michaell van de Poppe setting the cycle top for ETH between $15,000 and $25,000.
- VanEck predicting a $6,000 cycle top for Ether price and a $180,000 Bitcoin price in 2025.
- Bitwise Asset Management predicting that Bitcoin, Ether, and Solana will hit $200,000, $7,000, and $750, respectively, in 2025.
This article is not intended to provide investment advice or recommendations. Readers should conduct their own research when making a decision.
Conclusion
In conclusion, the Ethereum market is heating up once again, with Ether poised to break its all-time high in the coming days. Several factors contribute to this remarkable price action, including decreasing ETH supply on exchanges and increasing accumulation by large holders. Analysts have set ambitious price targets for ETH, ranging from $6,000 to $25,000. While every investment and trading move involves risk, it’s essential to stay informed about market trends and developments.
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