- Ethereum experienced a notable increase in deposits compared to withdrawals.
- ETH’s price trend suggests a possible breakout.
Recently, Ethereum’s [ETH] net flows on derivative exchanges exceeded 50,000 ETH per day, signifying a remarkable increase in deposits over withdrawals.
This development has led traders to speculate on its potential effects on ETH price fluctuations.
A rise in deposits might indicate either approaching selling pressure or heightened borrowing to support long positions, hinting at upcoming volatility.
With market participants gearing up for significant price fluctuations, Ethereum’s outlook for the upcoming months is likely to gain attention from investors.
Source: CryptoQuant
ETH price and inflation rate
Ethereum’s price dynamics have remained a focal point. In the last week, ETH has gained 8.53%, reaching a price of $2605.63 at the time of writing.
Currently, ETH/USDT is forming an ascending triangle, and a breakout from this formation could lead to higher prices. The next significant target for ETH is $2800, which could be exceeded if the bullish trend continues.
On the ETH/BTC trading pair, it is hovering near a crucial support level at $0.039 on the weekly chart. Despite prevailing bearish sentiment, this support level has proven resilient, indicating the potential for a rebound.
A recovery could not only benefit ETH but may also ignite a broader rally among the top 100 altcoins.
Source: TradingView
The inflation rate is a vital aspect of Ethereum’s market performance. Presently, Ethereum’s inflation rate is +0.31% annually, a figure that is lower than that of both Bitcoin and gold.
Since the Merge, which transitioned Ethereum to a Proof-of-Stake model, over 135,000 ETH have been burned, thus decreasing the supply. This burning mechanism continues to support its deflationary nature.
In spite of the tepid price movements in recent months, the increasing demand for the network and its deflationary features are paving the way for potential long-term price growth.
The combination of reduced supply and rising network utilization is likely to propel ETH prices upward in the future.
Source: X
Leading smart contract platform
Ethereum continues to hold its position as the foremost smart contract platform. Since its launch in 2015, Ethereum has been a cornerstone for advancements in the DeFi and NFT arenas.
With ETH 2.0 now operational, the network is more scalable, secure, and energy-efficient than ever before. These enhancements are aiding Ethereum’s persistent growth within the blockchain domain.
Read Ethereum’s [ETH] Price Prediction 2024–2025
The continuous development and adoption of Ethereum’s blockchain, along with its lower inflation and deflationary measures, are principal factors behind the optimism for higher prices.
Ethereum is well-positioned for robust performance in the near future. Monitoring Ethereum’s upcoming developments will be crucial, particularly with the prospects of gains as 2025 draws nearer.
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