Three Key Factors Driving Growth in Ethereum (ETH)

With the overall increase in the performance of most crypto assets today, Ethereum (ETH) is clearly on board. At the time of writing, the price of the digital currency is $1,671.53, up 5.69% in the previous 24 hours. With the increase, Ethereum is now rebuilding its week-to-date (WTD) metrics, having gained approximately 4.13% in that time frame.

While overall crypto market mood remains the most crucial element driving Ethereum price increase, two other separate drivers can be identified.

According to renowned crypto market monitoring services, the first is the intensive activity of both retail and whale purchasers. While Glassnode revealed that the total number of nonzero addresses surpassed 93,275,549, indicating heavy buying, WhaleStats validated whales’ use of the Ethereum protocol, as evidenced by the accumulation of altcoins such as Gala (GALA) and Chainlink (LINK).

📈 #Ethereum $ETH Number of Non-Zero Addresses just reached an ATH of 93,275,549

View metric:https://t.co/beS1MtIgAZ pic.twitter.com/zPqxXhD47D — glassnode alerts (@glassnodealerts) February 2, 2023

Aside from that, network activity has boosted the confidence of all Ethereum investors. Aside from the digital currency’s circulation quantity falling to its lowest point, the public testnet that will help replicate the staking Ether withdrawal procedure has also been activated, according to an earlier U.Today story.

Ethereum’s ascension to $2,000

Following the completion of Ethereum’s move from the proof-of-work (PoW) model to the proof-of-stake (PoS) model via The Merge, many anticipated a proportional increase in the coin’s price.

With Ethereum’s bullish rebound this year, the expectation that it will retest a new high of $2,000 has returned. While this price increase, if it occurs, will not be surprising given that Ethereum’s all-time high (ATH) remains at $4,891.70, the expected short-term $2,000 increase may be implausible.

This is because, with the introduction of the Shanghai upgrade, a large amount of staked Ethereum may be withdrawn and liquidated, causing the coin’s price to plummet.

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