Ethereum Rallies Past $4,000 Amid Surge in On-Chain Activity and U.S. Demand

Ethereum\u2019s ether (ETH) has climbed above $4,000 for the first time since March, signaling renewed strength in the second-largest cryptocurrency by market capitalization. Currently trading at $4,033, ether has gained 2.4% in the last 24 hours and 8.4% over the past week, outpacing bitcoin (BTC) during the same period.

The latest rally has been supported by significant inflows into spot ether exchange-traded funds (ETFs), with Thursday marking a record-setting day. Ether now stands just 2% away from a fresh 2024 high and remains 20% below its all-time record of $4,868.

Additionally, the ETH/BTC ratio, a key metric for tracking ether\u2019s performance against bitcoin, has climbed back to 0.04. This recovery marks a return to levels last seen during a brief peak in November 2022, following a long downward trend that began in September of that year.

The expanding Coinbase premium on ether further highlights growing U.S. interest. Coinbase\u2019s higher ether prices compared to Binance indicate strong demand from institutional and retail investors in the U.S. Data from TradingView reveals that this price disparity grew as U.S. markets opened, suggesting American traders are driving the latest surge.

On-chain activity provides additional evidence of Ethereum\u2019s strength. Glassnode data shows a sharp rise in active Ethereum addresses, with the 7-day moving average jumping from 368,000 on September 24 to 523,000 on December 5. This spike in activity constrains ether\u2019s supply through Ethereum\u2019s “burn” mechanism, adding further upward pressure on prices.

Despite ether\u2019s positive trajectory, the broader cryptocurrency market has seen mixed performance. The CoinDesk 20 index, which tracks the top 20 cryptocurrencies excluding memecoins, stablecoins, and exchange tokens, has fallen by 1.4% over the last day. Stellar (XLM) and litecoin (LTC) led the losses, dropping 3.1% and 5%, respectively. Meanwhile, Uniswap (UNI) and render token (RDNR) were standout performers, gaining 11.7% and 6.4% in the same period.

With its latest milestone, Ethereum continues to assert its dominance in the digital asset space. Bolstered by institutional interest, robust on-chain activity, and a favorable macro environment, ether\u2019s upward momentum positions it as a market leader in the evolving cryptocurrency landscape.