Shortly after surging above $4,000 on December 6, Ethereum (ETH) has sunk into a state of consolidation showing no significant price action over the last day. With growing speculations over the altcoin’s next price movement, CryptoQuant analyst Burak Kesmeci has shared a report that suggests a sustained price rally by Ethereum.
US Election Results Drive Ethereum Active Addresses To 417,000
Following the US elections of November 5, Ethereum, alongside a host of other cryptocurrencies, has experienced massive price gains driven primarily by the emergence of pro-crypto candidate Donald Trump as the US President-elect.
According to Burak Kesmeci, the results of the US elections removed much uncertainty around the crypto market while encouraging investment as evidenced by price gains of several tokens. Notably, Ethereum, known as the “Father of altcoins”, has recorded a price growth of 70% since November 5 reaching a local peak of $4,077.
As with all price rallies, there is continuous speculation on Ethereum’s ability to maintain its current upward price trajectory. Joining the discourse, Kesmeci has drawn a bullish inference from the asset’s change in active address.
The CryptoQuant analyst highlights that during Ethereum’s recent price surge, active addresses on its network increased by 36.26% from 306,000 on November 5, to its current value of 417,000. This development indicates that the price increase of Ethereum was based on an equal rise in organic demand and market interest by investors and blockchain users.
In conclusion, Burak Kesmeci states the growth in Ethereum active addresses backs the recent price rally as “healthy and sustainable”. Importantly, it is also a bullish signal that indicates ETH is likely to experience a long-term price surge.
ETH Price Overview
According to data from CoinMarketCap, Ethereum trades at $4,006 reflecting a slight loss of 0.54% in the past 24 hours. For long-term investors, the prominent altcoin remains in profit based on gains of 7.36% and 39.31% in the last seven and 30 days, respectively.
If ETH breaks upward following its current consolidation, the altcoin will face significant resistance at $4,100. However, moving past this price zone opens a potential pathway to $4,900 which lies around Ethereum’s all-time high at $4,891.
Aside from a rise in Ethereum active addresses, other developments continue to contribute to the heightened bullish sentiments around the second-largest cryptocurrency. This includes an increase in the inflows to the Ethereum spot ETFs, as backed by a cumulative total net inflow of $1.41 billion. In addition, the altseason appears to be kicking off with widespread gains tipped to occur in early 2025.
