From cointelegraph by Nancy Lubale
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Ether ETH$3,871.42 is poised to break its all-time high in the coming days after rising to a new year-to-date high of $4,108 on Dec. 16.
ETH price has gained 8% over the last week. The second largest cryptocurrency by market capitalization is up 28% over the last 30 days and 82% over the last year.
Data from Cointelegraph Markets Pro and TradingView shows Ether’s price was trading at $4,000, about 18% shy of its all-time high of $4,891 set on Nov. 26, 2021.
Accompanying ETH’s performance on Dec. 17 is a 30% leap in daily trading volume, currently at $42 billion, which suggests that this rally has momentum.
But with Ether investment products seeing continuous inflows alongside other fundamental factors and onchain metrics, how high can the price go?
One factor supporting Ether’s upside is reducing supply on exchanges. Data from onchain market intelligence firm CryptoQuant shows ETH balances on exchanges reached an 8.5-year low of 9.2 million ETH, down nearly 10% over the last year.
The net flow to/from exchanges shows a steep decline since October 2023, when withdrawals from the trading platforms began to surge. This drop accompanies a 73% rise in Ether’s price over the same time period.
The decreasing supply on exchanges could be partially explained by a spike in accumulation by large holders over the last few weeks.