Ethereum Hits $4,000 Milestone as Coinbase Premium and Activity Surge

Ether Soars Beyond $4,000, Hits Nine-Month High

For the first time since March, Ethereum\u2019s native cryptocurrency, ether (ETH), has surged past the $4,000 milestone. This marks a significant comeback for the digital asset, which currently trades at $4,033. In the past 24 hours, ether\u2019s value has increased by 2.4%, while over the past week, it has posted an impressive 8.4% gain, outperforming bitcoin (BTC) in both periods.

This rally is driven by strong demand, reflected in record inflows into spot ether exchange-traded funds (ETFs) on Thursday. With this boost, ether is now within 2% of setting a new high for 2024 and just 20% short of its all-time record of $4,868.

Ether\u2019s recovery against bitcoin is also notable, as the ETH/BTC ratio has climbed back to 0.04. This marks a level that previously represented a temporary peak in November 2022, after months of underperformance.

The widening Coinbase premium provides further evidence of strong market demand. Ether\u2019s higher price on Coinbase, compared to Binance, highlights heightened interest from U.S.-based institutional and retail investors. TradingView data suggests that this trend aligns with the opening of U.S. financial markets, emphasizing the regional influence on this price movement.

On the network level, Ethereum\u2019s on-chain activity has seen a remarkable uptick. According to Glassnode, the 7-day moving average of active Ethereum addresses has risen from 368,000 in late September to 523,000 as of December 5. This increased activity contributes to ether\u2019s bullish momentum by reducing its circulating supply through the blockchain\u2019s “burn” mechanism.

While ether leads the market surge, the broader crypto landscape shows mixed results. The CoinDesk 20 index, tracking the top 20 cryptocurrencies excluding memecoins, stablecoins, and exchange tokens, has fallen by 1.4%. Notable underperformers include stellar (XLM) and litecoin (LTC), which dropped 3.1% and 5%, respectively. In contrast, tokens like Uniswap (UNI) and render token (RDNR) have gained 11.7% and 6.4%, showcasing the diversity in market trends.

Ethereum\u2019s breakout above $4,000 underscores its growing appeal, buoyed by institutional interest, increasing on-chain activity, and favorable market dynamics. As the cryptocurrency market evolves, ether continues to shine as a key player in the digital asset space.