Ethereum has recently captured the market's attention, soaring past the significant $4,000 mark. This impressive rally is largely attributed to a confluence of factors, including substantial whale accumulation and shifting market dynamics, even as its circulating supply reaches a new milestone.
Whale-Driven Price Surge and Market Reaction
The recent surge in Ethereum's price, pushing it above $4,000, was accompanied by a massive accumulation event by institutional players. Six new wallets reportedly amassed a staggering $667 million worth of ETH from major exchanges, signaling strong conviction among large holders. This influx of capital triggered the largest short liquidation in months, further fueling the upward momentum. On-chain indicators like the Relative Strength Index (RSI) climbing above 72 indicated overbought conditions, while a widening Moving Average Convergence Divergence (MACD) histogram pointed to sustained buying pressure, reflecting a decisively bullish market sentiment.
Ethereum's Evolving Supply Dynamics
Amidst its price ascent, Ethereum's circulating supply officially crossed the 121 million ETH mark. While the network currently mints between 2,500 and 3,000 ETH daily, a substantial portion of this issuance is offset by robust staking activity, with over 36.18 million ETH locked in the network. Staking withdrawals play a crucial role in influencing Ethereum's inflation profile, mitigating the impact of increased circulation. Though this recent rise in supply presents a challenge to the long-held deflationary narrative, overall network demand and continued staking participation remain pivotal factors in determining Ethereum's future price trajectory.
