ETH rises 9% on capital inflows, bulls target $4,522
Capital inflows are substantial as the ETH/BTC ratio grows 15%.
A positive open interest and futures premium indicate traders' enthusiasm toward ETH.
Ethereum may rise to $4,522 if it breaks a crucial ascending trendline barrier.
Ethereum (ETH) rose 9% on Wednesday due to ETH ETF capital inflows and a sharp rise in open interest and futures premium. If positive momentum continues, ETH may break $4,093's annual high and reach $4,522.
Coinglass statistics showed $40.6 million in net inflows for Ethereum ETFs on Tuesday, their third straight day of positive flows. This follows two Bitcoin ETF net outflows.
BTC ETF outflows used to pull ETH along, but now ETH ETFs are carving their own course.
Positive flows may be due to investors switching from Bitcoin to ETH ahead of altcoin season.
Altcoin season is when investors take gains from the Bitcoin bull market and invest in altcoins, with Ethereum as the favourite.
Most investors are predicting an alt season since Ethereum has outperformed Bitcoin in recent weeks. Since falling to $0.3204 on November 21, the ETH/BTC ratio has risen nearly 15%.
Per Coinglass statistics, ETH open interest (OI) hit a record high of 6.55 million ETH worth $23.34 billion on Wednesday, maintaining its two-week surge.
Ethereum Price Forecast: A break over an ascending trendline barrier might finish the climb to $4,522.
Coinglass data shows Ethereum up 9% following $58.26 million in liquidations in 24 hours. Long and short liquidations were $28.52 million and $29.75 million.
The top cryptocurrency is attempting a rising trendline resistance from November 12 after breaking $3,400.
Maintaining positive momentum and overcoming trendline resistance may push ETH past its annual high of $4,093 to $4,522. The inverted Head-and-Shoulders rally ETH has hinted at for two weeks will be completed.
A daily candlestick closure below $2,817 will undermine the bullish premise and drop ETH to $2,300.