BlackRock’s Ethereum ETF Soars Past 1 Million ETH – Can Price Follow?

by

As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous market cycles and trends. The recent developments in Ethereum (ETH) have piqued my interest, as the cryptocurrency continues to attract institutional demand despite its lackluster performance in 2024.

Despite Ethereum (ETH) falling short again in breaking the persistent $4,000 barrier, BlackRock’s iShares Ethereum Trust ETF has surreptitiously gathered over a million ETH. This significant achievement underscores robust institutional interest in Ethereum, as its 2024 price performance remains relatively subdued.

Institutional Interest In Ethereum On The Rise

So far this year, Ethereum, the second-largest digital currency by market value, has increased by 43%. This rise took it from around $2,280 on January 1 to its current price of $3,283. However, Ethereum’s growth pales in comparison to other cryptocurrencies such as XRP, Solana (SOL), and SUI, which have achieved much greater gains during the same timeframe.

On the other hand, Ethereum boasts an edge over many other cryptocurrencies due to its access to institutional investors through regulated ETFs, similar to Bitcoin‘s market standing. As pointed out by crypto entrepreneur Dan Gambardello on X, BlackRock’s Ethereum ETF has now surpassed one million Ether in assets under management.

As an analyst, I’ve observed that Ethereum (ETH) has been consolidating below its all-time high (ATH), and there’s a surge in institutional interest. This situation seems to be setting the stage for what could be an unprecedented altcoin season. The inflow data from the ETH-focused ETFs appears to align with this perspective.

As an analyst, I’ve observed a significant trend: US spot Ether Exchange-Traded Funds (ETFs) have experienced four consecutive weeks of net inflows, amassing over $2 billion in capital. Currently, the combined net assets held across all these ETFs amount to approximately $12.15 billion, which is nearly 3% of Ethereum’s total market capitalization.

Optimism among crypto analysts continues to grow as they predict Ethereum, the top platform for smart contracts, is set to hit a new all-time high (ATH). For example, CryptosRus notes that Ethereum has shown bullish price trends during the first four months of the year following US presidential elections in the past.

After the 2016 U.S. election, there was a substantial surge in Ethereum (ETH) during the initial three months of 2017. A similar trend occurred after the 2020 election, as Ethereum experienced a series of four continuous weeks with rising prices in 2021.

As a researcher delving into the world of cryptocurrencies, I recently came across an insightful technical analysis shared by CryptoPoseidonn. He presented an 8-hour Ethereum chart, hinting that Ethereum might find its bottom near the 200-day exponential moving average (EMA), clearly demarcated in green on the chart. According to his assessment, this could potentially serve as a support level for ETH.

This recent retreat marks the first downturn following a major upward trend, and anxiety is running high. However, I think this could be an opportunity for us to establish a new lower price floor. Such dips often present chances to enhance your position in the market.

Is The Market Correction Nearing Its End?

The total crypto market cap has dropped from $3.9 trillion on December 16 to $3.4 trillion at the time of writing – a $500 billion loss in a week. Data from Coinglass reveals that over $289 million worth of liquidations occurred in the past 24 hours alone.

In spite of the current decline, experienced crypto analyst Pentoshi proposed on a 3-day chart that the dip might be a retest of the previous all-time high market cap reached in November 2022. Should this hold true, this level could potentially function as a foundation for the next price surge.

However, not all analysts are bullish in the short term. Renowned crypto entrepreneur Arthur Hayes recently warned of a potential market downturn around Donald Trump’s inauguration in January. At press time, ETH trades at $3,283, up 1.2% in the past 24 hours.

Read More

2024-12-24 03:56