Is Ethereum ready to break $4,000? Decoding ETH’s bullish metrics

• Ethereum has surged nearly 20% in two weeks, with significant accumulation by investors.
• Key metrics like active addresses and whale transactions indicate potential for price increases.

Ethereum [ETH] has shown signs of breaking out of its recent period of stagnation, finally gearing up for what could be a significant bull rally. After months of underperformance compared to Bitcoin, Ethereum is currently trading at $3,558. 

This follows a 20% price increase over the past two weeks, signaling renewed investor interest. While ETH is down by 1.4% in the past day, it remains above the crucial $3,500 support level, highlighting market resilience.

In the midst of this price movement, market analysts have identified key trends that reinforce Ethereum’s potential for sustained growth. A CryptoQuant analyst, known as theKriptolik, shared insights that shed light on ETH’s enduring appeal to major investors. 

Source: CryptoQuant

The analyst emphasized that despite Ethereum’s lower price levels compared to previous highs, the ETH Exchange Supply Ratio has dropped to levels last seen in 2016. This decrease indicates that investors are transferring their holdings off exchanges, suggesting long-term accumulation. 

Even as circulating supply has increased, the decline in exchange-held ETH highlights that investors continue to view ETH as a safe haven asset.

Key metrics signal growing momentum for Ethereum

Analyzing Ethereum’s broader metrics reveals additional insights into the asset’s performance and investor behavior. One notable indicator is the growth in Ethereum’s active addresses, a metric often associated with retail investor interest.

According to Glassnode, the number of active Ethereum addresses has steadily increased from under 500,000 in October to 531,000 as of 28th November. 

Source: Glassnode

This upward trajectory signals heightened network activity, which typically correlates with increased demand and potential price appreciation.

The rise in active addresses indicates a growing number of participants engaging with Ethereum’s ecosystem, whether for transactions, decentralized applications, or staking, further strengthening the network’s fundamentals.

Another significant metric is the activity of Ethereum whales—investors conducting transactions exceeding $100,000. Data from IntoTheBlock reveals that the number of whale transactions saw a peak of 11,210 earlier this month, reflecting heightened institutional activity.

However, this figure has recently declined, with Ethereum recording 7,410 whale transactions as of November 28.

Source: IntoTheBlock

Read Ethereum [ETH] Price Prediction 2024-2025

While the slight decrease could indicate short-term profit-taking, the sustained activity of large-scale investors suggests continued interest and confidence in Ethereum’s long-term value proposition.

Typically, an uptick in whale activity can lead to higher price volatility, whereas a reduction may signal consolidation or preparation for the next market move.