Ethereum spot exchange-traded funds (ETFs) are making headlines with an impressive 16-day inflow streak, sparking excitement among investors about the potential for ETH to reach a new all-time high (ATH) soon. For Ethereum to achieve this landmark, it must first overcome the pivotal resistance level of $4,000.
Ethereum Spot ETFs Attracting Consistent Inflows
Data from SoSoValue reveals a continuous stream of positive inflows into Ethereum spot ETFs that has persisted since November 22. Over this period, the cumulative net inflows have surged to an impressive $2.32 billion, with a notable $1.5 billion added between November 22 and December 16.
Breaking this down, the week ending December 13 recorded net inflows of $854.85 million, closely followed by $836.69 million in the week ending December 6. The total net assets held by Ethereum ETFs now stand at $14.28 billion, representing about 2.93% of ETH’s total circulating supply.
Among the leaders in this space, Grayscale’s Ethereum Trust (ETHE) is the largest holder with $5.87 billion in net assets, closely trailed by Blackrock’s iShares Ethereum Trust (ETHA) at $4.02 billion. These robust inflows have fostered a bullish sentiment, with many Ethereum enthusiasts eagerly anticipating a potential rally toward a new ATH for the second-largest cryptocurrency by market capitalization.
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Crypto analyst Momin Saqib took to X to share thoughts about ETH’s price action. He remarked that ETH seems ready to break past local highs in the $4,000 range and is eyeing the $4,500 mark. He expressed excitement about the steady inflows, noting that institutions are running out of options to capitalize on the growing cryptocurrency market.
Ethereum’s attempt to break resistance
Reviewing Ethereum’s weekly chart shows that it has made four significant attempts to clear the $4,000 resistance. Although it temporarily surpassed this level during its second attempt – creating an ATH of $4,878 – it ultimately resulted in a false breakout, followed by a prolonged bear market over the subsequent two years.
Analyst Rekt Capital mentioned that ETH’s successful retest of the $3,100 mark after a breakout has helped stabilize the cryptocurrency back into the $4,000 zone. He noted that ETH has managed to maintain support above $4,000 for the second week in a row, which could set the stage for further upward movement.
Cautious Optimism Among Traders
Despite the strong fundamentals and bullish signals bolstered by ongoing ETF inflows, some analysts advise caution regarding ETH’s short-term price movements. For example, analyst CryptoBullet hinted at the possibility of a brief dip to $3,700 before a rebound, underscoring that the cryptocurrency’s ability to stay above key resistance levels is a positive indicator of its momentum.
Additionally, concerns arose from Justin Sun, founder of Tron (TRX), who recently unstaked $208 million worth of ETH from Lido Finance. This action has led to worries about possible selling pressure that could impact the price. Currently, ETH is trading at $3,947, registering a slight decline of 0.2% in the last 24 hours.
The attention surrounding Ethereum ETFs is undeniable, and as inflows continue to flow in like a welcome breeze, many are left wondering whether we are on the brink of a new ATH. As always in the world of crypto, the ride is likely to be filled with excitement and surprises.
