Ethereum spot exchange-traded funds (ETFs) have logged 16 consecutive days of positive daily inflows, renewing hopes for ETH's new all-time high (ATH) in the coming weeks. However, for ETH to reach this milestone, it must cross the critical resistance level of $4,000.
Ethereum Spot ETFs attract regular flows
According to data from SoSoValue, spot Ethereum ETF inflows have been consistently positive since November 22.
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Breaking it down by weekly inflows, the week ending December 13 saw net inflows of $854.85 million, followed closely by $836.69 million in the week to December 6. 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 supported bullish sentiment, with Ethereum bulls anticipating a possible rally to a new HIGH 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 was noted that ETH seems ready to break through the local highs of the $4,000 range and is looking towards the $4,500 price level. He said:
Ethereum inflows have been coming in non-stop for the past few weeks! After seeing $BTC at $107K…. I think institutions have few options left to bet on higher side of crypto industry! Higher!
Looking at the Ethereum weekly chart, the digital asset has made four significant attempts to break through the $4,000 resistance level. While it briefly surpassed this level in its second attempt, creating the current ATH of $4,878, it was ultimately a false breakout, followed by a bear market well over the next two years.
Analyst Rekt Capital noted that ETH's post-breakout retest of the $3,100 price level was successful, bringing the digital currency back to the $4,000 range. They pointed out 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 more upward movement.
Despite the potential downside, ETH traders are still cautious
While strengthen basics, 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.
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For example, the CryptoBullet analyzer pressure that ETH will see a quick wick to $3,700 before going back. The analyst said that ETH's ability to hold above key resistance levels indicates its strong bullish trend.
Another factor that could dampen short-term optimism is Justin Sun, founder of Tron (TRX), who recently without stopping $208 million worth of ETH from Lido Finance. This move has raised concerns about potential sales pressure. ETH trades 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
