Ether Surges Past $4,000 for the First Time Since March
Ethereum’s native token, Ether (ETH), has climbed above the $4,000 mark, marking the first time since March that it has reached this level. This significant milestone reflects increased institutional interest and heightened on-chain activity.
Key Highlights:
- ETH Price Milestone: Ether is now trading at $4,033, just 20% shy of its all-time high of $4,868.
- Coinbase Premium: A higher price for ETH on Coinbase compared to Binance suggests growing demand from U.S. institutional and retail investors.
- Active Ethereum Addresses: Ethereum’s active addresses have increased dramatically, rising from 368,000 to 523,000 in the past two months.
Institutional Demand on the Rise
The Coinbase premium has expanded, indicating strong interest from U.S. investors. Ether’s higher price on Coinbase compared to Binance underscores increased institutional activity in the U.S. This coincided with the opening of U.S. markets, further amplifying ETH’s upward momentum.
On-Chain Activity Supports Growth
Data from Glassnode shows a sharp uptick in active Ethereum addresses. The 7-day moving average of active addresses rose by 42% between Sept. 24 and Dec. 5, from 368,000 to 523,000. This surge in activity bolsters Ether’s price as the burn mechanism continues to constrain supply.
Performance Compared to Bitcoin and Other Cryptocurrencies
Over the last seven days, ETH has gained 8.4%, outperforming Bitcoin (BTC) and many other major cryptocurrencies. The ETH/BTC ratio has hit 0.04, signaling improved performance relative to Bitcoin.
Meanwhile, the CoinDesk 20 index is down 1.4%, with notable losses from Stellar (XLM) and Litecoin (LTC), which dropped 3.1% and 5%, respectively. However, Uniswap (UNI) and Render Token (RDNR) have posted gains of 11.7% and 6.4% in the same period.
Conclusion
Ether’s price surge above $4,000 signifies renewed investor confidence, driven by institutional demand and increased on-chain activity. As the second-largest cryptocurrency inches closer to its all-time high, the coming months could see even greater momentum.
