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    Ethereum price surges to new 2021 high as whale holdings increase and supply tightens

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    30s Summary

    Ether (ETH) price reached a new high for 2021 at $4,108, and is likely to surpass its all-time high of $4,891. This surge in price corresponds with a decrease in available ETH, the lowest in 8.5 years, and massive accumulation by big holders. Ethereum whale wallet holdings now account for about 57% of all ETH in circulation. The ETH derivatives market has also seen a significant increase in total open interest. Demand for US-based Ethereum ETFs has been on the rise and Ethereum exchange-traded products have maintained their momentum with constant weekly gains.

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    Ether (ETH) is looking set to bust through its all-time high any day now. It’s already hit a new high for this year, reaching $4,108 on the 16th of December.

    Looking at the past week, ETH has increased by 8%. This cryptocurrency – which is the second biggest out there in terms of market capitalization – has also gone up by 28% in the past month, and by a whopping 82% over the past year.

    Going off of data from Cointelegraph Markets Pro and TradingView, Ether’s price was trading at $4,000, which leaves it about 18% shy of its all-time high of $4,891 set on Nov. 26, 2021.

    Along with the strong performance of ETH, we’re also seeing a 30% surge in daily trading volume, up to now stand at $42 billion. This just adds more momentum to this rally.

    There’s a key question on everyone’s minds though – with Ethereum investment products continuing to see more and more inflows, just how high can Ethereum’s price go?

    One thing that’s helping ETH’s climb is the reduce supply on exchanges. Data from onchain market intelligence firm CryptoQuant shows that ETH balance on exchanges is at its lowest point in 8.5 years, with 9.2 million ETH – that’s nearly 10% down over the past year.

    This decline coincides with a 73% increase in Ether’s price over that same time period.

    Another part of the reason for reduced supply on exchanges could be due to significant accumulation by big holders in the last few weeks.

    Interestingly, Ethereum whale wallet holdings are now at their highest level ever, accounting for about 57% of all ETH in circulation.

    “There are currently 104 whale wallets holding at least 100K Ethereum” collectively holding about $333 billion, said Santiment in a recent post.

    Looking at wallets holding between 10 ETH and 100,000 ETH, they’re at an all-time low of 33.5%, and wallets holding less than 100 Ether have a supply ratio of just 9.19%, hitting a near four-year low, according to the analytics firm.

    Clearly, the whales haven’t been selling off during this rally – rather, they’ve been accumulating more. This could be a positive sign in the long term, especially if this trend keeps going.

    On top of all this, the daily average of new Ethereum addresses reached 130,200 in December, hitting an eight-month high, according to Santiment.

    There’s also been a notable increase in the total open interest in the ETH derivatives market, jumping from 9.8 billion ETH on Nov. 5 to an all-time high of 20.7 billion ETH on Dec. 17.

    This means that demand for leveraged ETH positions and new money entering the market is increasing.

    On the institutional side, demand for US-based spot Ethereum ETFs have been on the rise every day since the 22nd of November.

    These investment products recorded their biggest day of inflows on Nov. 11 since their launch back in July, registering more than $428 million in inflows. Spot Ether ETFs saw cumulative inflows of $854.8 million in the week ending Dec. 13.

    As a whole, Ethereum exchange-traded products, or ETPs, have kept their momentum, with inflows marking seven consecutive weeks of gains in various Ether-based ETPs totaling $3.7 billion.

    According to James Butterfill, head of research at CoinShares, this represents a “dramatic improvement” in investor sentiment toward ETH.

    If institutional sentiment stays high, it’s likely that ETH price will try to reach the November 2021 all-time highs in the coming days.

    So just how high could ETH go?

    Data from Cointelegraph Markets Pro and TradingView shows ETH is trying to turn the important $4,000 resistance level into new support as it aims for new all-time highs.

    Analysts are setting their targets for ETH prices, with some even looking at 5-digit targets.

    “The fight for $4,000 continues,” says popular crypto analyst Jelle, adding, “Break this, and all bets are off.”

    Another analyst, Venturefounder, says ETH has been consolidating in a triangle for more than three years, setting the stage for “a new paradigm.” His ETH price target is above $15,000.

    However, not all targets are as lofty. For example, VanEck has predicted a $6,000 peak for Ether price. Meanwhile, Bitwise Asset Management predicts that Bitcoin, Ether, and Solana (SOL) will hit $200,000, $7,000, and $750, respectively, by 2025.

    Just remember, this isn’t investment advice or a recommendation. Before you make an investment or trading move, do your own research as these involve risks.

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