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Ethereum (ETH), the second largest cryptocurrency by market capitalization, just broke above the $3,000 barrier, a milestone that has rekindled interest and optimism in the cryptocurrency community.

Currently above $3,100, Ethereum according to on-chain analytics firm Santiment is finally showing the growth that propelled it to the second-largest cryptocurrency by market capitalization, a position it has held for the past eight years.

At the time of writing, ETH was up 4.92% in the last 24 hours to $3,189 and up 30% weekly. Despite Bitcoin's surge to all-time highs above $79,000, Ethereum is outperforming the top cryptocurrency in terms of daily and weekly gains.

Santiment appraised the current Ethereum outperformance, noting that Ethereum has surged above $3,100 for the first time in weeks as whales take major interest and daily transaction volume hits 11 figures. Notably, 8,482 ETH whale transactions are the most since Aug. 4 and $10.4 billion in ETH transaction volume is also the largest since then.

Three reasons for Ethereum price surge

Ethereum has been on the rise since Nov. 5 and would mark the fifth day of gains since this date.

Ethereum's advance has brought it above key resistances at the daily SMA 50 and 200 at $2,579 and $2,955, respectively, which has constrained its price action in months. Ethereum's comeback above $3,000 is the first since July of this year when its price fell after reaching a high of $3,563.

One of the key reasons for Ethereum's recent spike is a substantial increase in whale activity. According to Santiment, whale transaction data show a major spike in key stakeholder activity. These addresses have played a major part in helping Ethereum reach a 14-week high, it noted.

A rising transaction volume has also contributed to the ETH surge. Ethereum transaction volume has also increased significantly, reaching $10.4 billion in recent days.

The broader cryptocurrency market, led by Bitcoin's recent bull run, has also contributed to Ethereum's price surge. As Bitcoin reaches new highs, profits from Bitcoin are often redistributed into other cryptocurrencies, including Ethereum.

According to Santiment, this trend could continue, perhaps pushing Ethereum to its all-time high while network activity appears to be extremely healthy.