Ethereum’s price continues to show remarkable strength as it rallies above $4,000, igniting bullish sentiments among investors. With targets set on the previous all-time highs from 2021, which linger below $5,000, Ethereum enthusiasts are eager to see how far this momentum can take the cryptocurrency.
Recently, Ethereum (ETH) reached a year-to-date high of $4,108 on December 16, reflecting a notable gain of 8% over the past week. Over the last 30 days, ETH has surged a staggering 28%, and its annual increase stands at an impressive 82%. According to data from Cointelegraph Markets Pro and TradingView, ETH is now approximately 18% away from its all-time high of $4,891, which was recorded on November 26, 2021.
One critical factor contributing to ETH’s upward trajectory is the declining supply on exchanges. Current data indicates that the ETH balance on exchanges has hit an 8.5-year low at 9.2 million ETH, representing a nearly 10% decrease over the last year. Furthermore, the net flow metrics reveal a significant drop since October 2023, as withdrawals surged amid a robust price increase of 73% during the same period.
Additionally, the number of Ethereum whales has grown, prompting a decrease in supply on exchanges. Reports highlight that there are now 104 whale wallets holding at least 100K Ethereum, which collectively represents about 57% of the total ETH in circulation. Importantly, these whales have continued to accumulate rather than sell off during this rally, suggesting possible long-term bullish trends.
With institutional demand for Ethereum products also strengthening—highlighted by consistent inflows into US-based spot Ethereum ETFs—investors remain optimistic. As of December 13, these investment products tallied $3.7 billion in total inflows over a seven-week span, indicating a significant improvement in sentiment towards Ethereum. This pattern reinforces predictions that ETH might soon challenge the November 2021 highs and potentially reach new heights.
Analysts remain bullish, projecting a possible price target for Ethereum as high as $15,937 by May 2025. Some, like MN Capital founder Michaell van de Poppe, forecast a robust cycle comparable to 2017, estimating a price peak between $15,000 and $25,000. In contrast, firms like VanEck offer more conservative targets, predicting a $6,000 cycle top.
Only time will tell if Ethereum can maintain its growth trajectory and surpass previous highs. Investors are urged to remain vigilant and conduct thorough research as the market evolves.
