Ethereum started November with an impressive 40% growth, but it turned out to be difficult for the altcoin king to maintain this momentum
Price stabilization above $3,000 and significant interest from institutional investors may help to resume the bullish trend. One of the pillars of this growth is Ethereum ETFs, which attract record amounts of investment.
Ethereum receives support from institutions
Last week, Ethereum ETFs recorded the largest weekly inflows since launch. BlackRock led the trend with an impressive $286 million, while total inflows across all ETFs reached $550 million. This influx reflects the growing confidence of institutional investors, driven by the recovery in the price of Ethereum and recent record highs for bitcoin.
The increase in activity in the ETF segment strengthens Ethereum's position in the crypto market as a diversified asset. This trend potentially provides the necessary momentum to overcome the current price stagnation. The market mood seems to be leaning towards a bullish outlook.
The institutional demand for Ethereum extends beyond ETFs. According to the latest CoinShares report on net ETP flows, in November, the capital inflow of institutions to Ethereum amounted to $789 million. These large-scale investments reflect renewed interest in $ETH
as a long-term asset. They also highlight its growing role in the investment portfolios of major players. Such investments can play a key role in price growth.
ETH Forecast: a look into the future
Ethereum is now confidently holding above the critical mark of $3,001. This Fibonacci level is 61.8%, which is the basis of the bull market and creates the basis for potential growth.
With continued institutional activity and a positive mood in the market, altcoin can overcome the resistance at $3,248 and continue to grow. This will strengthen his position and consolidate the bullish trend.
A decrease in the price may cast doubt on the bullish outlook and weaken investor confidence. Ethereum's ability to maintain momentum depends on maintaining key support levels and leveraging institutional support.