- With Ethereum, deposits have rapidly exceeded withdrawals.
- ETH price pattern was indicating a possible breakout.
ethereum [ETH] Net flows on derivatives exchanges have recently exceeded 50,000 ETH per day, indicating a larger increase in deposits than withdrawals.
This trend has traders speculating about its potential impact on ETH price movements.
A spike in deposits could indicate either impending selling pressure or increased borrowing to fuel long positions, suggesting volatility is on the way.
Ethereum's outlook in the coming months could be a key focus for investors, as market participants expect significant price movements.
Source: CryptoQuant
ETH price and inflation rate
Ethereum price trends continue to attract attention. Over the past week, ETH has appreciated by 8.53% and its price at the time of writing was $2605.63.
ETH/USDT is currently located within an ascending triangle, and a breakout from this pattern could drive the price higher. The next major target for ETH is $2,800, which could be crossed if the bullish momentum continues.
The ETH/BTC pair is trading near the key support level at $0.039 on the weekly chart. Despite bearish market sentiment, this support level remains solid and indicates a potential rebound.
Such a pullback could not only benefit ETH but also trigger a broader rally in the top 100 altcoins.
Source: TradingView
Inflation remains an important factor in Ethereum's overall market performance. Ethereum currently has an annual inflation rate of +0.31%, which is lower than Bitcoin and gold.
Since the merge that moved Ethereum to proof-of-stake, over 135,000 ETH has been burned, reducing supply. This combustion mechanism continues to strengthen its deflationary aspects.
Although price trends have been subdued in recent months, increased demand and deflationary characteristics of the network have increased the likelihood of long-term price increases.
The combination of a decrease in Ethereum supply and an increase in network usage could cause ETH prices to rise in the future.
Source:X
The most advanced smart contract platform
Ethereum’s dominance as the leading smart contract platform remains strong. Since its creation in 2015, Ethereum has been the foundation for innovation in the DeFi and NFT space.
With ETH 2.0 now live, the network is more scalable, secure, and energy efficient than ever before. These advances are contributing to Ethereum's continued growth in the blockchain space.
read ethereum [ETH] Price prediction for 2024-2025
The continued development and use of Ethereum’s blockchain, coupled with its anti-inflation and deflationary mechanisms, are the key drivers behind price growth expectations.
Ethereum is well-positioned to perform well in the short term. We need to keep a close eye on Ethereum’s next move, especially as it could rise higher as 2025 approaches.
