While BTC price is hitting new all-time highs by breaking above the $100,000 level, Ethereum (ETH) is trading at $3,935 at the time of writing, with daily gains of 4.84%, weekly gains of 10.6% and monthly gains of 59%.
ETH seems to be preparing to scale a new level in its price and its investors are starting to dream of historical highs. What factors are pushing the price of ETH up?
Factors that are driving the price of ETH
First of all, it is worth noting that Ethereum ETFs have seen a significant increase in investment, with $133 million added in the day of December 3rd. This brings the total to $714.6 million over 7 days (counting from December 3rd).
This significant rise follows a record weekly inflow into ETFs in November, due to growing demand for these instruments. It also suggests an increase in institutional investment in this cryptoasset.
“On December 3, the total net inflow of Ethereum spot ETFs was $133 million, and net inflows continued for 7 consecutive days. The net inflow of Fidelity ETF FETH was $73.72 million, and the net inflow of BlackRock ETF ETHA was $65.29 million.”
Monthly transactions are also experiencing a record for ETH and highlight an increase in activity on this network: According to figures from IntoTheBlock, in November, Ethereum activity reached significant levels, with monthly transactions exceeding $180 billion , the highest monthly volume in almost three years.
Finally, it is worth mentioning the growth of this network: the average number of new wallets on Ethereum has risen to 134 thousand new addresses per day. This highlights the constant growth and increasing activity of this network that we already mentioned.
ETH Chart Analysis: Ranges to Watch
ETH price broke above the key level of $3,454 that we mentioned in the last analysis, which allowed for the current levels. Moreover, the price is trading above all of its moving averages, which is a sign that the bulls are in control.
The price is currently struggling to reach and overcome the strong psychological resistance at $4,000. If this line is reached, the price could face a double top at $4,100, a record level it reached on March 11, 2024 and from where it corrected.
Breaking through the previous ranges would lead to significant growth for ETH with other resistances at levels as high as $4,400.
Regarding the supports, we can establish the first one at 3,763 USD, which corresponds to the 25-period EMA and then the current level of the 100-period EMA or 3,511 USD.
Finally, there is a fairly strong support line around $3,500 which corresponds to the 100 EMA.
Meanwhile, the RSI at 73.85 points shows that the price is not oversold and that the bulls are in control.
Other important facts to keep in mind about ETH
As of writing, open interest in ETH futures has reached a record high of $25 billion, up $1.3 billion in the past 24 hours. This signals new leveraged positions in the market.
The “lagging” NFT market is also showing positive signs.
In the past 30 days, NFT sales on Ethereum reached over $253 million. An increase of over 32%, putting it above other blockchains in terms of NFT sales, according to data from CryptoSlam.
While these figures are positive, so are the bullish outlooks, with projections pointing to levels as high as $5,000.
