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ethereum spot exchange-traded funds (ETFs) have recorded 16 consecutive days of positive daily inflows, renewing optimism about eth's potential new all-time high (ATH) in the coming weeks. However, for eth to reach this milestone, it must surpass the critical $4,000 resistance level.
ethereum Spot ETFs Attract Steady Inflows
According to data from SoSoValue, ethereum spot ETF inflows have remained consistently positive since November 22. Cumulative net inflows total $2.32 billion, with a significant $1.5 billion added between November 22 and December 16 alone.
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Breaking it down by weekly inflows, the week ending December 13 saw net inflows of $854.85 million, closely followed by $836.69 million for the week ending December 6. Furthermore, the total net assets held by ethereum ETFs have increased to $14.28 billion, representing approximately 2.93% of the total circulating supply of eth.
Grayscale's ethereum Trust (ETHE) ranks as the largest holder with $5.87 billion in net assets, followed by Blackrock's iShares ethereum Trust (ETHA) with $4.02 billion. These strong inflows into ethereum ETFs have reinforced bullish sentiment, with ethereum bulls anticipating a potential rally to a new ATH for the second-largest cryptocurrency by market cap.
crypto analyst Momin Saqib took to x to share his thoughts on eth price action. the analyst <a target="_blank" href="https://x.com/mominsaqib/status/1868978195480903968″ target=”_blank” rel=”nofollow”>noted that eth seems poised to break through the local highs of the $4,000 range and is targeting the $4,500 price level. He added:
ethereum inflows have been coming in non-stop for the past few weeks! after seeing $btc at $107,000…. I think institutions don't have many options left to bet on further upside from the crypto industry! Higher!
Looking at ethereum's weekly chart, the digital asset has made four significant attempts to break through the $4,000 resistance level. While it briefly surpassed this level during its second attempt, creating its current ATH of $4,878, it ultimately turned out to be a false breakout, followed by a prolonged bear market for the next two years.
Analyst Rekt Capital noted that eth's post-breakout retest of the $3,100 price level was successful, propelling the cryptocurrency back to the $4,000 zone. They highlighted that eth has held above the $4,000 zone as support for the second week in a row, a key development that could pave the way for further bullish momentum.
Despite Bullish Potential, eth Traders Remain Cautious
While strengthening fundamentals, bullish Technical indicators and persistent ETF inflows paint a positive picture for ethereum, some analysts remain cautiously optimistic about eth's near-term price action.
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For example, analyst CryptoBullet emphasized that eth may see a quick wick to $3,700 before recovering. The analyst added that eth's ability to stay above key resistance levels indicates its strong bullish momentum.
Another factor that could dampen short-term optimism is Justin Sun, founder of Tron (TRX), who recently without betting $208 million in eth from Lido Finance. This move has raised concerns about possible selling pressure. eth is trading at $3,947 at press time, down 0.2% in the last 24 hours.
Featured image from Unsplash, charts from SoSoValue, x and TradingView.com
