Ethereum Volume Surges 85% Despite Lagging ETH Price – Analysis and Insights
Ethereum has seen a massive 85% increase in volume in just under two weeks, reaching a staggering $7.3 billion. It’s an exciting development, but what does it mean for the price of ETH?
Throughout 2024, Ethereum’s on-chain trading volume has been following the broader crypto market’s trend, with a steady decline overall. However, November has brought a change. Factors like increased investments in Bitcoin and Ethereum ETFs, along with the surprising U.S. Presidential election results, have caused a shift. Within a short span of time, Ethereum’s on-chain volume jumped significantly from $3.84 billion to $7.13 billion.
Although ETH is still a ways off from its all-time high of $4,891, this surge in activity is a positive sign. Despite this, reaching $4K by the end of the fourth quarter may be slightly delayed.
A key factor in ETH’s journey to $4K is controlling volatility. During the recent election rally, ETH saw some impressive gains before experiencing a reversal. Investors often view downturns as buying opportunities, leading to a rebound in ETH’s price. However, compared to other altcoins like Ripple and Cardano, Ethereum has shown more volatility in its price movements.
Interestingly, while Bitcoin has been consolidating in the $90K range for a few days, Ethereum’s performance relative to other altcoins is raising concerns. The surge in volume might not be enough for ETH to break through key resistance levels, hinting at a potential consolidation phase to come.
To break through these barriers, Ethereum would need HODLers to absorb selling pressure and Bitcoin to push past $100K. If these conditions are met and demand continues to rise, ETH could make a run for the $3,400 mark. But unless these factors align perfectly, a consolidation period before reaching $4K seems more probable. So, for now, it’s a waiting game to see what happens next in the Ethereum ecosystem.
