$ETH has not yet followed the vigorous recovery pace of the altcoin market, while competitors such as XRP, ADA, and BNB have already witnessed significant value increases.
Nevertheless, the ETH price remains steadily hovering around $3,700, with market participants hoping that a renewed surge in Ethereum ETF inflows could lead to a rapid jump in ETH price to new heights of $4,000.
In the face of the enthusiastic response from the altcoin market, Ethereum seems to lag slightly in this round of price surge. However, bullish forces have established a solid foothold at key support levels, building a strong defense for ETH's future trend.
IncomeSharks pointed out that Ethereum's daily support line remains solid, which enhances confidence for those holding previously allocated positions. At the current price level, I would not blindly chase ETH, but the support levels undoubtedly provide reasons for us to hold comfortably.
The team further emphasized Ethereum's profound commitment to blockchain utility and considers $3,200 as a psychological support line; once breached, it may trigger selling pressure on Ethereum.
Looking ahead, IncomeSharks maintains its recent optimistic expectation for Ethereum to reach $4,000 or even higher.
From a long-term chart perspective, since November 2021, the ETH price has formed a significant cup-and-handle pattern, indicating a potential breakout.
If Ethereum can successfully confirm a breakout at $3,800, it will lay a solid foundation for subsequent explosive growth. Based on the reliability of this pattern in historical predictions of significant increases, analysts have estimated a target price as high as $7,346.
As of the time of writing, the ETH price has slightly increased by 2%, with a market capitalization firmly at $44.4 billion.
It is noteworthy that Ethereum's on-chain transaction volume surged to $183.7 billion in November, setting a monthly record since early 2021, showing a 9% increase from the annual peak in March.
This significant growth not only reflects that capital is flooding into on-chain activities on a large scale but also benefits from the recovery of Ethereum-based non-fungible token trading, with Ethereum-based NFT market trading volumes reaching their highest peak since June.
The inflow of Ethereum spot ETFs remains strong, especially on Tuesday, December 3, where there was a significant surge. Following an inflow of $24 million on Monday, the net inflow on Tuesday soared to $132 million, with Fidelity's FETH and BlackRock's ETHA performing particularly well.
FETH saw a net inflow of $73.7 million on the day, while ETHA attracted over $65.3 million in capital inflows. Notably, according to data from Farside Investors, Grayscale's ETHE outflow dramatically reduced from over $44.3 million the previous day to $6.4 million, which is also a positive signal.
Since its launch, BlackRock's Ethereum ETF has accumulated over $2.2 billion in capital inflows, while Fidelity's FETH is also set to cross the $1 billion milestone.
Last Friday, the daily inflow of Ethereum ETFs even surpassed that of Bitcoin ETFs, becoming a new driving force behind the rise in ETH prices. This series of positive data and trends undoubtedly injects strong confidence and momentum into ETH's future development.
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