Ethereum (ETH) has been showing signs of renewed strength, with several bullish indicators pointing to the possibility of a significant price increase in the near future. After a period of underperformance relative to Bitcoin, ETH has surged nearly 20% in just two weeks, currently trading at $3,558. Despite a small 1.4% dip in the past 24 hours, Ethereum has managed to hold above the crucial $3,500 support level, signaling resilience and ongoing investor interest.

Key Metrics Point to Growing Momentum

Ethereum’s recent price action is not the only factor contributing to its bullish outlook. A combination of technical metrics and on-chain data suggest that ETH is entering a phase of increasing demand and potential for further growth.

One of the key indicators that market analysts are closely watching is the ETH Exchange Supply Ratio, a metric that tracks the amount of Ethereum held on exchanges compared to its circulating supply. According to CryptoQuant analyst theKriptolik, the Exchange Supply Ratio for Ethereum has dropped to levels not seen since 2016. This decrease is a strong signal that investors are increasingly moving their ETH holdings off exchanges, a typical behavior associated with long-term accumulation rather than short-term speculation. Even though the circulating supply of Ethereum has increased, the reduction in exchange-held ETH suggests that many investors view ETH as a safe-haven asset, positioning themselves for potential long-term gains.

Rising Active Addresses: A Sign of Increased Demand

In addition to the Exchange Supply Ratio, another crucial indicator of Ethereum’s growing momentum is the rise in active addresses. Active addresses refer to the number of unique addresses engaging with the Ethereum network, whether through transactions, staking, or interacting with decentralized applications (dApps). This metric is a strong indicator of retail investor interest and network usage.

Data from Glassnode shows that the number of active Ethereum addresses has steadily increased from just under 500,000 in October to 531,000 as of November 28th. This uptick in active addresses points to a growing number of participants engaging with the Ethereum ecosystem, further strengthening its underlying fundamentals. As more users interact with Ethereum’s decentralized ecosystem, the network becomes more robust, which could lead to continued price appreciation.

Whale Activity: A Mixed Signal for Ethereum’s Future

Another key factor influencing Ethereum’s price trajectory is the activity of whales—large investors or entities conducting transactions over $100,000. Whale transactions can create significant market movements, and their actions are often watched closely for clues about market sentiment.

Data from IntoTheBlock reveals that Ethereum whale transactions peaked at 11,210 earlier in November, indicating a surge in institutional interest. However, this figure has since decreased to 7,410 whale transactions as of November 28. While the decline may suggest some short-term profit-taking or consolidation, the overall level of whale activity remains high, suggesting that large investors continue to see value in Ethereum.

Historically, whale activity has been associated with higher price volatility. When whales become more active, they can drive price swings in either direction. On the other hand, a decline in whale transactions might signal a period of consolidation, where large players are preparing for the next move.

Ethereum’s Price Potential: Is $4,000 Within Reach?

Ethereum’s recent performance, combined with the bullish on-chain metrics, suggests that ETH may be ready for a potential breakout. The combination of reduced exchange supply, rising active addresses, and sustained whale interest all point to increased demand for the cryptocurrency.

As Ethereum continues to gain momentum, the $4,000 mark becomes a key target for many traders and investors. If ETH can maintain its current trajectory and break through key resistance levels, it may see significant upward movement. However, it’s important to note that the cryptocurrency market is inherently volatile, and investors should be prepared for potential fluctuations in price.

The Path Ahead for Ethereum

While Ethereum’s recent gains are impressive, it is still in a critical phase of its market cycle. If the bullish momentum continues, Ethereum could break past its current resistance levels, potentially reaching $4,000 and beyond. However, market participants should remain cautious, as the cryptocurrency space is subject to rapid changes and unforeseen developments.

In the coming weeks, investors will likely be watching Ethereum closely, looking for signals of continued growth. If key metrics such as active addresses and whale transactions continue to show strong bullish behavior, Ethereum’s potential for future growth remains high. On the other hand, if whale activity declines further or if market conditions shift, ETH may face short-term setbacks.

Conclusion: Is Ethereum Ready for a Bull Run?

Ethereum’s current performance and key metrics indicate that it could be on the verge of a major price breakout. With strong support from active addresses, reduced exchange supply, and continued interest from whales, Ethereum seems poised for growth. While the $4,000 target remains within reach, investors should remain cautious of market volatility as they monitor Ethereum’s progress over the coming weeks.