Key Points
- Ethereum’s active addresses have risen by 36%, indicating strong network activity and organic demand.
- Breaking the $4,100 resistance could send Ethereum towards its all-time high of $4,891.
Ethereum [ETH] saw a significant boost earlier this month, breaching the $4,000 level before entering a phase of consolidation. Despite the recent cooling off in price action, analysts remain hopeful, citing strong signs that Ethereum’s bullish momentum is far from finished.
Ethereum’s Price Movement After US Elections
Post the US elections on November 5th, ETH has recorded an impressive 70% price increase. This increase is attributed to organic demand, as evidenced by a substantial increase in active addresses.
The surge, which is driven by actual network activity, implies that Ethereum’s rally could be sustainable, with potential for continued growth in the future.
The asset’s price trajectory following the US elections has been explosive, with a 70% rally since November 5th. The market sentiment shifted with the breakout above the $3,500 resistance, fuelled by increased institutional activity and a resurgence in DeFi. Data from TradingView shows solid volume accumulation alongside bullish price action, as indicated by a rising OBV metric.
Active Addresses and Ethereum’s Role
Since the November 5 elections, Ethereum’s network activity has seen a significant rise, with active addresses growing by over 36% to 417,000. This increase reflects a rise in investor interest and broader blockchain usage. This metric, often seen as a proxy for real network activity, supports the current Ethereum rally as being based on strong fundamentals.
Analysts suggest this growth could signal a continued upward trajectory, especially with Ethereum’s expanding role in DeFi and NFTs, reinforcing its position as the leading altcoin in a changing market landscape.
The $4,000 Consolidation Phase
Ethereum’s consolidation phase at $4,000 has sparked mixed sentiments about its next move. While some predict a potential pullback, others remain hopeful, citing healthy fundamentals.
Breaking the $4,100 resistance could propel Ethereum towards its all-time high of $4,891. Key indicators, such as rising active addresses and sustained volume accumulation, suggest bullish momentum remains intact.
However, the $4,100 level presents a psychological barrier. Analysts also highlight the possibility of external factors, like macroeconomic conditions or regulatory developments, influencing Ethereum’s trajectory.
For long-term investors, Ethereum continues to be profitable, with gains of over 39% in the past month, positioning it as a cornerstone of the altcoin rally.
Ethereum’s increasing institutional adoption is apparent from the rising inflows into spot ETFs, which now boast a cumulative net inflow of $1.41 billion. The timing of these inflows aligns with Ethereum’s recent rally, amplifying bullish sentiment around the asset.
