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Large Ethereum Transactions Grow As ETH Breaks Yearly Highs

Ethereum (ETH) is making headlines as it trends toward the $4,100 mark, reaching a new yearly high of $4,096. This milestone, just $3 above the previous high set in March, signals a potential resurgence for the second-largest cryptocurrency by market capitalization. The price action has caught the attention of analysts and investors, particularly as Ethereum continues to outperform expectations in a market dominated by volatility and uncertainty.

Key metrics from IntoTheBlock shared by analyst Ali Martinez shed light on the network’s activity, revealing a surge in large Ethereum transactions. Historically, such increases in transaction volume have been linked to significant price movements, suggesting that Ethereum’s current uptrend could have more room to run. These developments hint at growing interest from institutional players and high-net-worth investors, further solidifying Ethereum’s position as a market leader.

The next few weeks promise to be pivotal as Ethereum approaches the year’s end. Will it sustain its momentum and close the year with a breakout above $4,100? Or will it face resistance and retrace? With on-chain activity and market sentiment aligning in Ethereum’s favor, all eyes are on its next move as traders and investors position themselves for what could be an exciting close to 2024.

Ethereum Transactions Surge With Price

Ethereum continues to dominate market discussions after pushing to new yearly highs on Friday. The cryptocurrency surged past $4,096, surpassing its previous peak set in March. This upward momentum has reignited investor interest, but Ethereum’s price isn’t the only thing on the rise—its network activity is booming as well.

According to data by analyst Ali Martinez (IntoTheBlock), large Ethereum transactions are experiencing a significant uptick. Martinez highlights that weekly transaction volume has skyrocketed by over 300%, reaching an impressive $17.15 billion yesterday. This surge in network activity signals increased confidence among institutional players and high-net-worth investors, who often precede retail adoption during major bull runs.

Ethereum Large Transactions Volume (USD)

Such growth in transaction volume historically correlates with sustained upward price movements, suggesting Ethereum’s rally may not be over. As the second-largest cryptocurrency by market cap, ETH appears well-positioned to continue setting new highs if these trends persist.

Despite this optimism, ETH faces a key milestone ahead—its all-time high of $4,878, set in November 2021, is still 20% away. While Ethereum’s recent breakout has invigorated bulls, analysts caution that reaching and sustaining prices near the ATH will require significant buy-side pressure and broader market strength.

If the current trajectory holds, Ethereum could approach its ATH sooner than expected, further solidifying its status as the go-to blockchain for decentralized applications and financial innovation. For now, investors are closely monitoring Ethereum’s price action and network data to gauge whether this rally has the momentum to break new ground or if a pullback is imminent.

ETH Pushing Above $4k 

Ethereum is currently trading at $3,960, showing resilience after reaching a local high of $4,096 just two days ago. This rally has brought Ethereum back into the spotlight, with investors eyeing key levels that could dictate its next move.

A weekly close above the critical $4,000 mark would signal the highest weekly close for ETH since December 2021, a major milestone for the second-largest cryptocurrency. Such a close would reinforce the bullish sentiment surrounding Ethereum, potentially attracting more buy-side pressure and setting the stage for a continued rally toward its all-time high of $4,878.

ETH testing the $4K mark

On the flip side, failure to achieve a weekly close above $3,880—its previous highest weekly close—could indicate waning momentum. In this scenario, Ethereum may enter a consolidation phase as traders take profits and the market digests recent gains. Consolidation below this level would likely keep ETH range-bound in the near term, with $3,880 and $4,000 acting as pivotal resistance levels.

The next few days will be crucial as ETH navigates this critical juncture. A decisive weekly close will likely determine whether Ethereum extends its current rally or pauses to consolidate, offering traders opportunities and challenges in this dynamic market.

Featured image from DALL-E, chart from TradingView

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Ethereum Failed Transactions: You Won’t Believe How Much Users Have Lost

The Ethereum network has usually been criticized for the number of failed transactions that occur on it and how it leads to users losing their money as a result of this. This onslaught was recently renewed after a figure in the crypto community showed the staggering amount that has been lost from failed transactions.

ETH Users Lose Over 100,000 To Failed Transactions

In a post on his X (formerly Twitter) platform, the Marketing and Communications Director of Blockstream, Fernando Nikolić, shared a screenshot that showed that Ethereum users had lost over $100,000 due to failed transactions. Interestingly, the $100,000 value happened to be only for the top 10 transactions in the screenshot, with Nikolić noting that there were other ones.

From the screenshot, one can see how a particular user lost over $38,000 in gas fees from a single transaction. The second user on the list lost over $17,000 in gas fees, with others on the list also losing thousands of dollars in gas fees despite the fact that the transaction failed. Usually, gas fees paid on the Ethereum network are gone forever, irrespective of whether the transactions succeed or fail. 

Noteworthily, eight out of the transactions from the screenshot occurred back in May during the period of the frenzy around the meme coin PEPE, which caused an unusual surge in traffic on the Ethereum network.

Failed transactions are known to occur rampantly during such periods because a surge in activity on the network leads to a significant increase in gas fees, with some users falling short of the required gas fee (at the point of executing their trade) needed to process a transaction, which causes it to fail. 

Ethereum price chart from Tradingview.com

Coordinated Attack On Ethereum?

In his post, Nikolić referred to the failed transactions on the Ethereum network as “hot garbage.” Although his post could just be about a concerned member of the crypto community calling out the network, it bears mentioning that he happens to be the second Bitcoin maximalist calling out the network in the space of a week. 

Another Bitcoin maximalist, Bit Paine, had earlier suggested that the network was a scam. The crypto pundit hinted that the Ethereum network has helped facilitate the creation of several “digital penny” stocks, which he also referred to as unregistered securities. 

However, both statements could be unrelated and simply two astute members of the Bitcoin community, showing why they believe Bitcoin remains supreme. 

At the time of writing, Ethereum is trading above $1,800, up in the last 24 hours, according to data from CoinMarketCap. 

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Ethereum Devs Try To Leverage Price Surge As Smart Contracts Reach New High

Ethereum rallied with the rest of the crypto market, reaching above $1,500 to land at a new one-month high. As the market rallied, developers had roused from their slumber looking to take advantage of the renewed interest in the market. This saw the number of new smart contracts deployed on the network reach new 2022 highs.

Devs Bring The Heat

Through 2022, the number of new smart contracts being deployed on the Ethereum network had been on the decline. This decline is understandable given that the market had entered another stretched-out crypto winter and investors were no longer willing to take as many risks as they did back in 2021.

Developers had to shelve some of their projects as they waited for better market conditions to launch, which was provided by the market recovery. New smart contracts were deployed rapidly in the last week, leading to a new all-time high in 2022. 

In this 7-day period, there have been more than 35,000 new Ethereum contracts deployed. The deployment rate of these new contracts has followed the market through its recovery. As prices are high, investors are more likely to put money into new projects. Hence the willingness of developers to put their contracts into the market. 

Ethereum new smart contracts

New smart contracts surge | Source: CryptoQuant

Daily active addresses on the network also recorded an uptick during this time. It is up about 25% in the last week, although it is far from reaching its 2022 all-time high of 934,000 active addresses back in July. Accordingly, the transaction count also saw an increase during this time.

Can Ethereum Hold Up?

Even with the marked increase in activity on the network, it has not been enough to hold up the price of Ethereum. The digital asset which had reached a peak just below $1,600 on Thursday had begun to quickly shed its gains ahead of the opening of trading hours on Friday.

Ethereum price chart on TradingView.com

ETH price loses footing above $1,500 | Source: ETHUSD on TradingView.com

Ethereum had lost almost 4% of its value in the last 24 hours, which dragged its price down below $1,500. Support that had been mounting at this level had proven to not be sustainable and bears had broken through the barrier without much hassle.

Exchange inflows for the cryptocurrency are on the rise in the last day with a 0.5% increase. This indicates mounting sell pressure on the market. However, with outflows growing just as rapidly, Ethereum investors seem to be carrying out a balancing act at this junction.

The 50-day moving average points towards hold for ETH at this point.  The next significant resistance level now lies at $1,570. As the market goes into the weekend which is always marked by low volatility, it is hard to pinpoint where the price could swing.

Featured image from The Coin Republic, chart from TradingView.com

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