Ethereum, the altcoin king has seen a steady rise, hitting an ATH of $ 4,440.77 and still trading at a modest $ 4,330.08. While price predictions and anticipations of a run to another ATH are floating around in the market, Ethereum’s supply dynamics have been narrating a separate tune, a pleasant tune (luckily for the bulls).
Increased utility
Notably, the number of active ETH addresses over the past month has seen a steady increase, which was critical in establishing its new ATH price of $ 4,457 on October 29. This increased utility continued to be one of the main proponents for price gains.
The good news was that active addresses still held the highest levels, as did the price of ETH. Further, the number of new addresses also saw a massive uptick presenting heightened market euphoria and newer participants flocking to the network. The number of new climber addresses more than 65% in less than a week.
That being said, as Ethereum hit a new ATH after reaching a massive token circulation output day of 1.74M $ETH, the same created a bullish divergence. Overall, on-chain metrics seemed to be pretty healthy for the best altcoin, as utility seemed to increase as well.
Supply and demand leading to price discovery
For the fourth time since May 2021, Ethereum was reaching the all-time high level of $4400. During this same period, the supply and demand for Ethereum has changed dramatically. Notably, in only five months’ time, the available supply of Ethereum on central exchanges has decreased by 18%, which equals an amount of more than 4 million ETH.
A CryptoQuant Publish pointed out how, based on supply and demand dynamics, the aforementioned trend could lead ETH to price discovery very soon.
However, in the near future, one possible scenario for Ether would be to flip the $5000 support/resistance and then continue rallying upward. Analyst Michaël van de Poppe also noted that the next Ethereum pulse wave target could be $ 6,000.
Notably, as per data from Skew there are close to 102K calls placed at the $5K level for Ether according to Ether options global interest by strike. So it looks like a large part of the market is hoping to see ETH above $ 5,000.
