Ethereum Price Surges 50% as Institutional Demand Increases
The altcoin industry has experienced substantial bullish momentum recently, as Bitcoin's price struggles to reach the anticipated $100K target. The TOTAL2 market cap, excluding Bitcoin, has increased over 80% in five weeks, reaching approximately $1.56 trillion on December 4.
Demand for altcoins has surged, particularly large-cap altcoins like XRP, TRX, and BNB. Additionally, indications of supportive crypto regulations from the United States government are expected under the upcoming Trump administration.
Ethereum Accumulation Continues
Ether accumulation has intensified, with a decline of over 212K ETH on centralized exchanges within 24 hours. Bitfinex reported the highest Ether outflows in seven days, exceeding 244K ETH, primarily driven by whale investors.
US spot Ether ETFs have seen increased accumulation, with total net inflows surpassing $730 million since inception earlier this year. As of December 3, these ETFs held about $11.22 billion in total net assets following a $132 million cash inflow on Tuesday.
BlackRock's ETHA and Fidelity’s FETH led the cash inflows with approximately $65.2 million and $73.7 million on Tuesday.
What Next?
In light of the ongoing bullish sentiment, Ether's price has risen more than 50% in four weeks, trading at about $3,721 during this report. The altcoin has a fully diluted valuation of around $448 billion and a daily average traded volume exceeding $44 billion, having retested a significant macro resistance logarithmic trend.
The weekly Relative Strength Index (RSI) is above 63%, while the daily RSI attempts to exceed 70%. A successful breakout for Ether on the weekly timeframe may lead to a golden cross between the 50 and 200 Moving Averages (MA).
If #Ethereum $ETH experiences a pullback, keep an eye on the $3,300 support level — a potential buying opportunity.
Our mid-term target remains $6,000, with a long-term outlook of $10,000! https://t.co/mQQOjrKBFM pic.twitter.com/OEvDIV0ZpD
— Ali (@ali_charts) December 4, 2024
Crypto analyst Ali Martinez suggests that Ether's price is targeting $6,000 in the midterm and potentially $10,000 long-term. However, there is a risk of a downturn pushing Ether's price towards the $3,300 support level.