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Ethereum spot exchange-traded funds (ETFs) have recorded positive daily inflows for 16 consecutive days, which has once again fueled optimism that ETH could hit new all-time highs (ATHs) in the coming weeks. However, to reach this milestone, ETH must break through the critical resistance level of $4,000.
Ethereum spot ETF attracts continued capital inflows
According to SoSoValue data, Ethereum spot ETF inflows have remained positive since November 22. The cumulative net inflow totaled $2.32 billion, with an increase of $1.5 billion between November 22 and December 16 alone.
Broken down by weekly inflows, net inflows were $854.85 million for the week ending December 13, followed by $836.69 million for the week ending December 6. In addition, the total net assets held by Ethereum ETFs have climbed to $14.28 billion, or about 2.93% of the total circulating supply of ETH.
Grayscale’s Ethereum Trust (ETHE) is the largest holder with $5.87 billion in net assets, followed by BlackRock’s iShares Ethereum Trust (ETHA) with $4.02 billion in net assets. Strong inflows into Ethereum ETFs have bolstered bullish sentiment, with Ethereum bulls predicting that the second-largest cryptocurrency by market cap could hit new highs.
Momin Saqib, a cryptocurrency analyst, shared his thoughts on ETH’s price action on X. The analyst noted that ETH is expected to break through the local highs in the $4,000 range and aim for the $4,500 price level. He added:
Ethereum has seen non-stop inflows over the past few weeks! After seeing BTC hit $107K… I don’t think institutions have many options left to bet on higher upside in the crypto industry! Higher!
Looking at Ethereum’s weekly chart, the digital asset has attempted to break through the $4,000 resistance level four times. While it briefly broke through this level on the second attempt, setting a current high of $4,878, it ultimately proved to be a false breakout, followed by a prolonged bear market over the next two years.
Analysts at Rekt Capital noted that ETH’s retest of the $3,100 price level after its breakout was successful, pushing the cryptocurrency back into the $4,000 region. They highlighted that ETH has held above the $4,000 region as support for the second week in a row, a key development that could pave the way for further upward momentum.
ETH traders remain cautious despite upside potential
While strengthening fundamentals, bullish technical indicators, and continued ETF inflows paint a positive picture for Ethereum, some analysts remain cautiously optimistic about ETH’s short-term price action.
For example, analyst CryptoBullet highlighted that ETH could quickly rise to $3,700 before rebounding. The analyst added that ETH’s ability to hold key resistance levels shows that its bullish momentum is strong.
Another factor that could dampen short-term optimism is Tron (TRX) founder Justin Sun, who recently withdrew $208 million worth of ETH from Lido Finance. The move raised concerns about potential selling pressure. At press time, ETH is trading at $3,947, down 0.2% over the past 24 hours.
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