Why Ethereum Could be the Optimal Investment in 2024, Leading to Potential Returns of at least 3x-5x
The ongoing bull market in the cryptocurrency world, which began in January 2023, shows no signs of slowing down. Bitcoin has exceeded its previous record high and is now valued at $69,000, while Ethereum has surpassed the significant milestone of $4,000.
Unlike Bitcoin, which has benefited from the involvement of institutional investors through ETFs, Ethereum has been making significant gains on its own. This unexpected surge in the prices of both cryptocurrencies has also resulted in substantial profits for many alternative coins in a short period of time.
The surge in Ethereum’s price has led to an 80% unrealized profit, which could prompt some investors to sell and take their gains. Data from CryptoQuant CEO Ki Young Ju reveals that both Bitcoin and Ethereum accumulation addresses are showing significant unrealized profits, with Bitcoin at 171% and Ethereum at 80%. The immediate surge in Ethereum’s price is also attributed to the Ethereum Dencun upgrade taking place today.
Bitcoin has experienced a surge in demand from institutional investors in recent months, particularly after the approval of ETFs in January. This has led to a rapid increase in accumulation. In contrast, Ethereum’s accumulation rate has been more steady, without the same bursts of acceleration.
Despite the lack of ETF demand, Ethereum remains popular among whales, indicating that it is still seen as a reliable alternative to Bitcoin. The realized price of Ethereum, which indicates the price at which the coins were last moved, shows a 183% unrealized profit, suggesting a bullish sentiment among investors.
However, there are some signs of caution within Ethereum’s network activity. The Ethereum age-consumed metric spiked when the price crossed $4,000, indicating potential profit-taking activity. Additionally, the mean coin age of Ethereum has been trending upward, suggesting that some holders may be looking to sell and cash in their profits.
On the other hand, Bitcoin’s mean coin age has been decreasing, indicating that holders are selling their coins. This divergence in behavior between Bitcoin and Ethereum holders suggests a cautious approach for investors, as there may be market fluctuations in the near future.
Analysts and key indicators suggest that Ethereum’s rally may continue, possibly leading to a new all-time high. Popular X user Ali supports this view, foreseeing a clear path to $5,000 as resistance weakens. He predicts a major supply zone between $4,522 and $4,646, where many addresses hold significant amounts of Ethereum. However, data from IntoTheBlock shows that approximately 95% of Ethereum holders are currently in profit due to the recent price increase. With the Bitcoin halving just 37 days away, Ethereum’s performance will be closely watched.
Tags: Ethereum