ETH Price to $4,000 Imminent as Ethereum ETF Inflows Surge Again

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As a seasoned crypto investor with over five years of experience in the digital asset market, I find myself cautiously optimistic about Ethereum (ETH) and its potential price surge to $4,000 soon. While ETH has been relatively quiet during this altcoin season compared to some of its peers, it’s important to remember that patience is a virtue in crypto investing.

From my perspective as an analyst, it’s interesting to note that while altcoins such as XRP, Cardano (ADA), and BNB have experienced substantial growth, Ethereum‘s native cryptocurrency, ETH, hasn’t joined the rally yet. At the moment, the price of ETH is maintaining its position near $3,700. However, anticipation among investors is high for a swift surge towards $4,000, fueled by a recent surge in Ethereum ETF inflows.

ETH Price Surge to $4,000 Soon?

Despite other altcoins like Ripple (XRP), Cardano (ADA), and Binance Coin (BNB) experiencing a surge this season, Ethereum’s bulls have managed to maintain its key support zones.

According to the analysis of crypto expert IncomeSharks, Ethereum’s day-to-day support continues to be robust, which strengthens faith in maintaining positions previously established. The analyst advises against aggressively purchasing ETH at this point, but suggests that for the moment, the day-to-day support is holding firm.

The analyst underscored their dedication to investments offering utility on the blockchain and established a minimum price of $3,200. If the price falls below this point, they plan to sell off Ethereum. On the positive side, IncomeSharks anticipates Ethereum’s value will reach at least $4,000 in the coming period.

Over a prolonged period, starting from November 2021, Ethereum’s price chart has taken the shape of a large cup-and-handle formation. Yet, before Ethereum can experience substantial growth, it must first breach the $3,800 mark, indicating a successful breakout. If this happens, analysts predict a potential price surge towards an estimated target of $7,346, based on the pattern’s past success in predicting substantial increases.

Presently, the price of ETH is climbing by 2.15%, currently standing at approximately $3688.51. This puts its market capitalization at an impressive $444 billion. Notably, Ethereum’s on-chain volume reached a staggering $183.7 billion in November, representing the highest monthly total since early 2021. Furthermore, this figure represents a substantial 9% increase over the previous peak in March of last year.

This growth highlights a significant capital rotation into on-chain activities, driven partly by a revival in Ethereum-based NFT trading. Ethereum-based NFT marketplaces recorded their highest volumes since June.

Spot Ethereum ETF Inflows Surge Again

As a researcher, I am observing a robust continuation of investments into the spot Ethereum Exchange Traded Fund (ETF). On a significant day, December 3, there was another surge in inflows, amounting to approximately $132 million. This surge followed Monday’s already impressive $24 million inflow. The main contributors to this strong influx were Fidelity’s FETH and BlackRock’s ETHA.

According to data from Farside Investors, FETH experienced an inflow of approximately $73.7 million, while ETHA saw inflows exceeding $65.3 million. Notably, Grayscale’s ETHE saw a significant decrease in outflows, dropping from over $44.3 million the previous day to just $6.4 million.

The BlackRock Ethereum ETF has already crossed $2.2 billion in inflows since inception while Fidelity’s FETH is just short of hitting the $1 billion milestone. Last Friday, the daily inflows in Ether ETFs also surpassed that of Bitcoin ETF daily inflows. This has become catalyst for a recent jump in ETH price.

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2024-12-04 11:30