Ethereum's Rally Continues Amid Whale Accumulation, Burn Rates, and Anticipated Dencun Upgrade
Summary:
Ether (ETH) has seen a 3.5% surge over the recent 24 hours, reaching a new yearly high of $4,065. Large Ethereum investors have been increasing their holdings while deposits on exchanges diminish. Additionally, a considerable amount of ETH has been burned and staked, reducing Ether's circulating supply. Further influences on Ether's price are the anticipated Dencun upgrade and the possible introduction of a spot Ether ETF. The ongoing rise of Bitcoin also implies a progressive uptick for Ether.
Ether (ETH) has witnessed an impressive rally in the recent 24 hours, with a 3.5% increase, hitting a brand new peak this year at $4,065, as documented by Cointelegraph Markets Pro and CoinMarketCap. Central cryptocurrency Bitcoin (BTC) also reached the $72,000 tier by climbing up 4.4% in the past day, attaining a novel record of $72,377 on March 11. Compared to the previous week, Ether's value ascended by 16%, reflecting Bitcoin's 15% surge during the identical timeframe. Here's a closer examination of the dynamics behind Ether's current price escalation.
Major Ethereum investors continue to enlarge their portfolios, forecasting further price surges. Analytics company Santiment reveals that wallets containing between 10 million and 100 million ETH experienced an expansion from 27% on January 1 to 30.56% on March 11. Besides, those comprising between 1 million and 10 million ETH have seen a substantial increase of 7% to7.6% over the past five days.
This accumulation trend is supplemented by a decline in ETH deposits on exchanges. As Glassnode's data reveals, deposit actions into familiar exchange wallets started to drop on February 27, when ETH price surpassed $3,200. This downtrend extended on March 5, when ETH exceeded $3,500, dipping from 39,953 transactions to 28,637 on March 10.
Reduced Ether transfers to exchanges suggest a reluctance to sell, indicating a bullish sign. Instead, transactions moving Ether away from exchanges have seen a rise. Whale Alert highlighted numerous substantial Ethereum transactions on March 11 from exchanges to personal custody wallets. One holder transferred 20,000 ETH totaling $80,695,382 from Bybit crypto exchange to an unknown wallet. Another one shifted 4,999 ETH, amounting to $20,044,345, from Binance to an unidentified wallet.
The swift pace of ETH burning lends further support to Ether's price. Over the past week, about 51,957 ETH, valued roughly $210 million, have been burned according to ultrasound.money. Simultaneously, Ethereum's proof-of-stake mechanism has led over 31.65 million ETH, equal to $128 billion at current rates, to be staked on the Beacon Chain.
Investors and developers await the upcoming Dencun upgrade with anticipation. The upgrade, scheduled to go live on March 13, will feature "proto-danksharding," aimed at lessening transaction costs on Ethereum layer 2 scaling networks by providing dedicated storage spaces for data.
Further fueling Ether's price is the increasing likelihood of a spot Ether ETF entering the market. Following the approval of 11 spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) on January 10, optimism is rife for an imminent approval of ETH ETFs. The SEC has until May 23, its mandatory deadline, to rule on several pending spot Ethereum ETF applications.
As Bitcoin consistently pushes at higher highs, Ether's price is expected to stay on its upward trajectory, potentially surpassing its record high of $4,800, driven by on-chain data, the Dencun upgrade, and a potential spot Ether ETF. However, this article does not offer investment advice or recommendations. Investing and trading come with risk, and readers should carry out independent research prior to decision-making.
Published At
3/11/2024 9:54:41 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.