Top Reasons Why Ethereum Might Be The Best Bet in 2024 For Atleast 3x-5x Profits

The post Top Reasons Why Ethereum Might Be The Best Bet in 2024 For Atleast 3x-5x Profits appeared first on Coinpedia Fintech News

The ongoing cryptocurrency bull rally, which began in January 2023, continues to gather momentum. Bitcoin has surpassed its previous all-time high, reaching $69,000, while Ethereum has broken through the significant psychological barrier of $4,000.

In the bullish scenario, Ethereum is making some big moves all on its own, without the hype of big investors like Bitcoin has with ETFs. While Bitcoin gets a boost from institutions investing through ETFs, Ethereum is soaring without that help. The unpredictable surge in prices of both the top coins has led to substantial gains for many altcoins within short periods.

This bullish surge could prompt some investors to take profits as the ETH price hits a historical milestone. Data from CryptoQuant CEO Ki Young Ju showcase that accumulation addresses for both Bitcoin and Ethereum are showing significant unrealized profits, with Bitcoin at 171% and Ethereum at 80%. The immediate surge in ETH price is also the reflection of the Ethereum Dencun upgrade happening today. 

Bitcoin has seen a surge in institutional demand over the past few months, especially after the approval of ETFs in January, leading to a rapid increase in accumulation. On the other hand, Ethereum’s accumulation rate has been more steady, without the same bursts of acceleration.

Despite the lack of ETF demand, Ethereum has maintained its popularity among whales, suggesting that it is still viewed as a safe alternative to Bitcoin. Ethereum’s realized price, which indicates the price at which the coins were last moved, stands at 183% unrealized profits, indicating a bullish sentiment among investors.

However, there are signs of caution in 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 cash in their profits.

Moreover, 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 fluctuations in the market shortly.

Analysts and key indicators suggest Ethereum’s rally may continue, possibly reaching a new all-time high. Ali, a popular X user, supports this view, seeing a clear path to $5,000 as resistance weakens. He predicts a major supply zone between $4,522-$4,646, where many addresses hold significant ETH amounts. However, IntoTheBlock data shows that Ethereum’s recent price increase has led to approximately 95% of holders being in profit. Since Bitcoin halving is just 37 days away, therefore ETH’s performance will be noteworthy.