Spot Ethereum ETFs saw a surge in inflows as Fidelity’s FETH dominated on Tuesday, with ETH prices showing strength at $3,700.
Ethereum’s native cryptocurrency ETH has yet to participate in the altcoin market rally while peers such as XRP, Cardano (ADA), BNB, etc. have witnessed strong growth. ETH price is firming around $3,700, and investors are predicting an immediate rebound to $4,000 as Ethereum ETF inflows surge again.
Will ETH price surge to $4,000 soon?
Although Ethereum has yet to see a rally in this altcoin season compared to its peers like XRP, ADA, and BNB, bulls have defended strong ETH support levels.
Cryptocurrency analyst IncomeSharks noted that Ethereum’s daily support level remains intact, which boosts confidence in holding positions previously entered. “I would not chase ETH at this level, but for now, the daily support level remains intact,” the analyst noted.
The analyst highlighted the commitment to on-chain utility plays and set a downside threshold at $3,200, suggesting that a break below this level would trigger an Ethereum sell-off. On the upside, IncomeSharks maintains Ethereum’s near-term target of $4,000 or higher.
On the multi-year chart, ETH price has also formed a massive cup-with-handle pattern since November 2021. However, Ethereum first needs to confirm a breakout above $3,800, which would set the stage for explosive growth in the future. Based on the pattern’s historical reliability in predicting significant gains, analysts estimate a target price of $7,346.
At press time, ETH price is up 2.15% at $3,688.51, with a market cap of $444 billion. In November, Ethereum’s on-chain transaction volume surged to $183.7 billion, the highest monthly total since early 2021 and up 9% from the yearly peak in March.
The growth highlights a massive influx of capital into on-chain activity, driven in part by a resurgence in trading of NFTs based on Ethereum, which has seen its highest volume since June.
Ethereum spot ETF inflows surge again
Inflows into spot Ethereum ETFs remain strong, with another surge on Tuesday, December 3. Following Monday’s $24 million inflows, Tuesday’s net inflows surged to $132 million, with Fidelity’s FETH and BlackRock’s ETHA leading the way.
FETH saw net inflows of $73.7 million, while ETHA saw inflows of over $65.3 million. On a positive note, Grayscale’s ETHE saw outflows drop significantly to $6.4 million from over $44.3 million the day before, according to Farside Investors.
Since its inception, the BlackRock Ethereum ETF has received inflows of more than $2.2 billion, and Fidelity's FETH is also about to reach the $1 billion milestone. Last Friday, the daily inflows of the Ethereum ETF also exceeded the daily inflows of the Bitcoin ETF. This has become a catalyst for the recent rise in ETH prices.
