$$BTC
Ethereum spot exchange-traded funds (ETFs) have recorded daily positive inflows for 16 consecutive days, which once again gives people optimism about ETH reaching an 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 ETFs attract continued inflows of capital
According to data from SoSoValue, since November 22, inflows into the Ethereum spot ETF have consistently maintained positive growth. The total net inflow has reached $2.32 billion, with an increase of $1.5 billion during the period from November 22 to December 16.
By weekly inflow breakdown, the net inflow for the week ending December 13 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, accounting for about 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 inflows into Ethereum ETFs have bolstered bullish sentiment, and Ethereum bulls expect 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 pointed out that ETH is expected to break through the local high of the $4,000 range and aim for a price level of $4,500. He added:
In the past few 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 a higher upside in the cryptocurrency industry! Higher!
From Ethereum's weekly chart, the digital asset has attempted to break through the $4,000 resistance level four times. Although it briefly surpassed this level in its second attempt, reaching a current high of $4,878, it ultimately proved to be a false breakout, leading to a prolonged bear market over the next two years.
Analyst Rekt Capital noted that a successful re-test of the $3,100 price level after ETH's breakout would push the cryptocurrency back into the $4,000 range. They emphasized that ETH has maintained above the $4,000 range for the second consecutive week as support, which could pave the way for further upward momentum.
Despite the upside potential, ETH traders remain cautious
While strengthening fundamentals, bullish technical indicators, and ongoing ETF inflows paint a positive outlook for Ethereum, some analysts remain cautiously optimistic about ETH's short-term price movements.
For example, analyst CryptoBullet emphasized that ETH could quickly rise to $3,700, 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 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.
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