This article is also available in Spanish.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, appears to be attracting attention as analysts watch market indicators that indicate a possible next move for ETH.
Recent data from CryptoQuant has highlighted ETF accumulation and inflow patterns, providing detailed insight into Ethereum’s potential trajectory as it underperforms compared to Bitcoin in the current cycle.
Analysis of trends in ETF fund accumulation and inflows
In the series posts shared on social media platform X, CryptoQuant analysts analyzed Ethereum’s key metrics. One observation that stood out was Ethereum’s balance in accumulation addresses. These addresses currently hold approximately 19.5 million ETH worth approximately $78 billion.
By comparison, Bitcoin accumulation addresses hold approximately 2.8 million BTC worth $280 billion. Although Bitcoin’s dollar value is four times greater than Ethereum’s, this coincides with their relative market capitalization, providing insight into investor behavior.
Another critical indicator that has received attention has been the steady inflow into Ethereum-focused ETFs over recent months. Significant jumps were recorded on several key dates, including $1.1 billion on November 11 and $839 million on December 4, 2024.
According to CryptoQuant analysts, these steady inflows are a forceful indicator of institutional buying interest, reinforcing Ethereum’s growing attractiveness among large-scale investors.
The Ethereum ETF has seen a steady inflow of funds in recent months.
Key jumps on:
November 11, 2024: $1,100 million
November 21, 2024: $754 million
November 25, 2024: $629 million
November 27, 2024: $883 million
December 4, 2024: $839 millionThese inflows reflect forceful purchasing pressure. pic.twitter.com/OIwWNmRPYB
— CryptoQuant.com (@cryptoquant_com) December 10, 2024
Despite forceful demand for ETFs, Ethereum’s price movements have been less dramatic compared to Bitcoin’s performance this cycle. Historically, Ethereum price peaks have followed Bitcoin price peaks, as seen in the 2021 bull market.
Meanwhile, Bitcoin hit an all-time high (ATH) in March with an boost of 480%, while Ethereum peaked a few months later with an boost of approximately 1,114%. However, Ethereum appears to be underperforming in the current cycle, signaling a shift in market dynamics.
Taker volume and potential growth
Moreover, a significant area of concern that analysts have mentioned is Ethereum’s buyer volume, which reflects market sentiment by comparing aggressive buying and selling activity.
CryptoQuant reported that Ethereum sales volume has reached a record low of -400 million. This aggressive selling activity is reminiscent of patterns seen prior to ATH in 2021. While the current selling pressure may appear bearish, it may also signal that the market is approaching a critical turning point.
Ethereum Taker volume has reached an all-time low.
Ethereum price weakness is due to high sales volume, currently at a record low of -400 million, indicating aggressive selling.
A similar pattern occurred ahead of Ethereum’s May 2021 peak. Despite this, it could still… pic.twitter.com/OmRYvAzjxI
— CryptoQuant.com (@cryptoquant_com) December 10, 2024
Analysts emphasized that Ethereum’s frail results in this cycle do not exclude the possibility of significant increases.
The interplay between accumulation patterns, ETF inflows, and recipient volume suggests that Ethereum may still have room for growth momentum.
Featured image created with DALL-E, chart from TradingView
