Ethereum Price Breaks Out as Spot Ether ETFs See Record Cash Inflows
After Bitcoin's price volatility following its first $100k milestone, Ethereum's price has indicated a potential bullish breakout. As the leading altcoin with a fully diluted valuation of approximately $465 billion and a daily trading volume around $54 billion, Ether has been steadily increasing since the November rebound.
Technically, Ether is positioned to rally toward its all-time high in the upcoming weeks. The ETH/USD pair has successfully broken out of a multi-year symmetrical triangular pattern on the weekly timeframe. Additionally, the ETH/BTC pair is poised to initiate a new bull trend after over three years of decline. Meanwhile, Bitcoin’s dominance has peaked and entered a macro downtrend, signaling an anticipated altseason.
ETH STARTS BREAKING OUT FROM
THIS BIG WEEKLY SYMMETRICAL
TRIANGLE 🚀WE WILL SEE NEW YEARLY ALL TIME
HIGH FOR ETH WITHIN THIS WEEKVITALIK PLS DON’T DUMP ON US pic.twitter.com/tgXYQR8Ynm
— Ash Crypto (@Ashcryptoreal) December 6, 2024
Ethereum Whales Accelerate Accumulation
The rise of large-cap altcoins, particularly Ripple Labs’ XRP and Binance Coin (BNB), has prompted increased accumulation of Ethereum by whales. Ethereum boasts the largest Web3 ecosystem, with a total value locked (TVL) of about $76 billion and a stablecoins market cap exceeding $104 billion.
In the last five weeks, the Ethereum ecosystem has seen significant cash inflows through US spot Ether ETFs totaling approximately $1.8 billion. Recently, these ETFs recorded their highest cash inflow of $428 million. BlackRock’s ETHA, Fidelity’s FBTC, and Grayscale’s ETH led net cash inflows at $292 million, $113 million, and $30 million respectively.
On-chain data from CoinGlass indicates that the supply of Ether on centralized exchanges has decreased by over 432k units in the past week, reflecting rising demand from institutional investors. Additionally, Ether’s futures Open Interest (OI) has surged from below $5 billion in January to over $26 billion currently.
Altseason Approaching
As Ethereum signals a forthcoming bull run towards an all-time high, many altcoins are gearing up for similar movements. The TOTAL2 market cap, excluding Bitcoin, is retesting its 2021 all-time high, with bullish momentum evident.
Global leaders, including US President-elect Donald Trump, are increasingly investing in the cryptocurrency sector to stimulate economic growth. Investors should strategically position their portfolios to maximize potential gains in the coming months.