Ethereum (ETH) started November with a significant increase of 40%, but maintaining this momentum has been a challenge so far.
With the price stabilizing above $3,000, a significant boost in institutional interest could help reignite ETH’s bullish momentum. In this regard, spot cryptocurrency exchange-traded funds (ETFs) are at the center of this rally, recording historic inflows.
Ethereum has the support of institutions
ETH ETFs experienced their largest inflows this week. BlackRock led the surge with an impressive $286 million, while combined inflows across all ETFs reached $550 million.
This flow reflects growing institutional confidence, driven by the asset’s recovery and recent record highs in Bitcoin prices. The surge in ETF activity also highlights institutional investors’ growing reliance on the asset as a diversified asset.
This trend is strengthening the cryptocurrency’s position in the crypto market, potentially providing the impetus needed to overcome its recent price stagnation.
Ethereum ETF inflows. Source: Glassnode
Institutional demand for Ethereum extends beyond ETFs. According to CoinShares’ latest ETP net inflow report, November has already seen $789 million inflows into the asset from institutions. These large-scale investments reflect a renewed interest in the cryptocurrency as a long-term asset.
Additionally, large wallet holders are showing heightened activity, further validating the token’s strong macro momentum. Their investments could be crucial in driving the price, especially as institutions expand their exposure to the cryptocurrency.
This level of interest highlights Ethereum’s growing role as a key player in institutional portfolios.
Ethereum Institutional Flows. Source: CoinShares
Price prediction
ETH is currently trading at $3,108, holding steady above the critical support at $3,000. This level is aligned with the 61.8% Fibonacci Retracement line, an important support, providing a stable base for potential gains.
If institutional activity and positive market sentiment persist, the asset could break above the $3,248 resistance, enabling a continued uptrend. Such a move would position ETH for further gains, solidifying its upward trajectory.
Ethereum Price Analysis. Source: TradingView
A dip, on the other hand, would invalidate the bullish outlook and could shake investor confidence. Ethereum’s ability to maintain momentum depends on holding key support levels and capitalizing on its institutional backing.
The article Ethereum poised to skyrocket on historic ETF inflows? Analysis appeared first on BeInCrypto.
