ETH Price to $4,000 Imminent as Ethereum ETF Inflows Surge Again
- ETH price is gearing up for a breakout above $3,800, potentially rallying 100% further.
- Spot Ethereum ETFs saw significant inflows, with $132 million added on December 3.
- November’s on-chain Ethereum volume reached $183.7 billion, reflecting revived activity.
Ethereum’s native cryptocurrency, ETH, has not yet joined the ongoing altcoin market rally, despite strong gains seen in its peers such as XRP, Cardano (ADA), and BNB. While these altcoins have been experiencing notable price increases, ETH has remained relatively stable. Investors expected ETH to follow suit and break above the $4,000 mark, but it has so far maintained a firm position around $3,700.
Despite this, Ethereum’s outlook remains promising, as recent trends suggest that ETH is preparing for its own surge. Ethereum ETF inflows have increased significantly, adding to the growing optimism around ETH’s future performance. These inflows signal strong institutional interest in Ethereum, which could be a catalyst for a price rally in the near term.
Investors are closely watching Ethereum’s price movement, hoping that it will soon join the broader altcoin rally. As ETH’s price holds steady near $3,700, many predict that a breakout above this level could set the stage for a swift climb toward $4,000. This potential price movement is supported by the continued positive sentiment in the market, driven in part by the surge in Ethereum ETF investments.
The strong inflows into Ethereum ETFs also suggest a growing confidence in Ethereum’s long-term value. These financial products provide a more accessible way for traditional investors to gain exposure to ETH without directly purchasing the cryptocurrency. As these ETFs gain traction, they could further fuel ETH’s price rally and help it catch up with its altcoin counterparts.
Ultimately, while ETH has yet to experience the explosive growth seen in other altcoins, the factors supporting its price—such as increased ETF interest and market optimism—point to a potential breakout. If these trends continue, ETH could soon join the rally and reach new highs, solidifying its position in the broader cryptocurrency market.
Will ETH Price Surge to $4,000 Soon?
While Ethereum has not experienced a rally this altcoin season like its peers XRP, ADA, and BNB, bulls have successfully defended strong ETH support levels.
Crypto analyst IncomeSharks pointed out that Ethereum’s daily support remains intact, which strengthens confidence in holding previously entered positions. “I wouldn’t chase ETH at this level, but for now, daily support is holding,” the analyst stated.
The analyst emphasized a focus on on-chain utility plays and set a downside threshold at $3,200, warning that a drop below this level could trigger an Ethereum sell-off. On the upside, IncomeSharks maintains a near-term target of $4,000 or higher for Ethereum.
On the multi-year chart, ETH price has formed a massive cup-and-handle pattern since November 2021. However, Ethereum must first confirm a breakout above $3,800 to set the stage for explosive growth. Analysts predict a price target of $7,346, based on the historical reliability of this pattern in forecasting significant gains.
As of press time, ETH is trading 2.15% higher at $3,688.51, with a market cap of $444 billion. Ethereum’s on-chain volume surged to $183.7 billion in November, reaching its highest monthly total since early 2021 and marking a 9% increase over the previous yearly peak in March.
This growth reflects a significant capital rotation into on-chain activities, driven in part by a resurgence in Ethereum-based NFT trading. Ethereum-based NFT marketplaces saw their highest volumes since June.
Spot Ethereum ETF Inflows Rise Again
Inflows into spot Ethereum ETFs remain strong, surging again on Tuesday, December 3. After $24 million in inflows on Monday, net inflows on Tuesday jumped to $132 million, driven by Fidelity’s FETH and BlackRock’s ETHA.
FETH saw net inflows of $73.7 million, while ETHA recorded more than $65.3 million in inflows. A positive sign was the significant drop in outflows from Grayscale’s ETHE, which fell to $6.4 million, down from over $44.3 million the day before, according to data from Farside Investors.
The BlackRock Ethereum ETF has surpassed $2.2 billion in inflows since its launch, while Fidelity’s FETH is just shy of reaching the $1 billion milestone. Last Friday, daily inflows into Ether ETFs even outpaced those of Bitcoin ETFs. This trend has acted as a catalyst for the recent jump in ETH price.
