Ethereum shoots to new all-time high at $1,500 – but altcoin markets cool off
After huge price jumps in decentralised financial coins, a mini-bull run in Bitcoin and many small-cap crypto assets, attention is finally returning to Ethereum.
The second largest cryptocurrency by market cap is just Bitcoin Trader about to shoot to new all-time highs, while the altcoin market is starting to cool down. Ethereum is currently trading for $1,500, which is a new all-time high by most people’s standards.
Ethereum is struggling slightly at this key level with sell orders coming in at this round number, as seen in the chart below.
The trend appears positive despite resistance at $1,500.
Grayscale buys and boosts Ethereum
Michael Sonnenshein, the CEO of Grayscale, has just announced that the company’s Ethereum trust has opened its doors to accredited investors to allocate capital at NAV for the first time in over a month.
Grayscale is a digital asset manager that provides accredited investors (mostly Wall Street firms and family offices) with exposure to Bitcoin and Ethereum.
Grayscale holds over 2.8 million Ether. The firm saw about 400,000 Ether worth of inflows during the month of November – about the same amount of ETH that was mined during that period.
Many investors think the reopening of the Ethereum trust will lead to a spike in demand for the cryptocurrency, driving the asset higher.
It is unclear how much Grayscale will see in inflows until the company files an update with the SEC later this week or next.
Strong fundamental trends
Ethereum is seeing fundamental trends that are likely to boost ETH’s value over the long term.
As we previously reported, on-chain analyst Spencer Noon, an investor at cryptocurrency-focused venture firm Variant, has noted that Ethereum (Go to Buy Ethereum Guide) is seeing record levels of on-chain activity by many metrics.
To name just a few metrics that are at all-time highs for the cryptocurrency: Ethereum transaction fees have surpassed Bitcoin’s due to DeFi, the amount of value transferred on the network has reached an all-time high, Ethereum has reached an all-time high of daily active addresses, and there is now over $25 billion locked in the DeFi space.
Raoul Pal, macro investor and founder of Real Vision, is adding to his Ethereum position as he sees more upside potential in the cryptocurrency than in Bitcoin:
“For longer-term HODLers of BTC and ETH, this is probably a good time to accumulate more. Personally, I have added more ETH and now time to add more speculative cryptos. Haven’t pulled the trigger because still some homework to do. Good luck. Ugly price = opportunity.”