The Ethereum spot exchange-traded fund (ETF) has recorded positive daily inflows for 16 consecutive days, which again raises optimism about ETH reaching a new all-time high (ATH) in the coming weeks. However, to reach this milestone, ETH must break through the key resistance level of $4,000.
Ethereum spot ETF attracts ongoing capital inflow
According to SoSoValue's data, since November 22, the inflow of Ethereum spot ETFs has maintained positive growth. The total net inflow reached $2.32 billion, with an increase of $1.5 billion occurring only between November 22 and December 16.
By weekly inflow, as of the week ending December 13, the net inflow was $854.85 million, followed by $836.69 million for the week ending December 6. Additionally, the total net assets held by Ethereum ETFs have risen to $14.28 billion, approximately 2.93% of the total circulating supply of ETH.
Grayscale's Ethereum Trust (ETHE) is the largest holder with net assets of $5.87 billion, followed by BlackRock's iShares Ethereum Trust (ETHA) with net assets of $4.02 billion. The strong inflow of Ethereum ETFs has boosted bullish sentiment, with Ethereum bulls expecting the second-largest cryptocurrency by market cap to reach new highs.
Cryptocurrency analyst Momin Saqib shared his views on ETH's price movements on X. The analyst noted that ETH is expected to break through the local high of the $4,000 range and target the price level of $4,500. He added:
In recent weeks, the inflow of funds into Ethereum has not stopped! After seeing BTC reach $107,000... I believe institutions have little choice but to bet on higher upside potential in the cryptocurrency industry! Higher!
From the weekly chart of Ethereum, this digital asset has attempted to break the resistance level of $4,000 four times. Although it briefly surpassed this level during the second attempt, reaching a current high of $4,878, it ultimately proved to be a false breakout, leading to a prolonged bear market for the next two years.
Analyst Rekt Capital pointed out that ETH's successful re-test of the $3,100 price level after breaking through has propelled the cryptocurrency back into the $4,000 range. They emphasize that ETH has maintained support above the $4,000 area for the second consecutive week, a key development that may pave the way for further upward momentum.
Despite the potential for an upward movement, ETH traders remain cautious
Although the strengthening fundamentals, bullish technical indicators, and continued ETF inflows paint a positive outlook for Ethereum, some analysts remain cautiously optimistic about ETH's short-term price movements.
For example, analyst CryptoBullet
Emphasize
, ETH could quickly rise to $3,700 and then rebound. The analyst added that ETH's ability to hold key resistance levels indicates strong bullish momentum.
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. This move has raised concerns about potential selling pressure. As of the time of writing, ETH is trading at $3,947, down 0.2% in the past 24 hours.
