Ethereum Price Targets All-Time High as Spot Ether ETFs See $836M Inflow
During the current altcoin season, Ethereum (ETH) has initiated a macro parabolic rally. The altcoin's fully diluted valuation is approximately $465 billion, with a price increase exceeding 30% over the last three weeks, achieving around $4,000. This marks the highest weekly close since December 2021, indicating bullish control.
Technical Analysis
From a technical perspective, Ether is poised to target its all-time high of nearly $5,000. The altcoin closed above a macro falling logarithmic trend for the first time since the 2022 bear market.
A potential midterm correction may retest the recent breakout, bringing Ether's price down to about $3,724 before continuing its upward trajectory. Increased crypto liquidations and rising futures open interest could trigger short-term corrections to stabilize the market from heightened FOMO among traders.
$4k #Ethereum weekly close signals a breakout of a cup and handle formation (since Nov 2021):
Next $ETH price targets:
$4,900 (previous ATH resistance)
$5,349 (cup and handle target)
$6,457 (medium)
$7,238 (bullish)— venturefounder (@venturefounder) December 8, 2024
Ethereum Whale Accumulation
On-chain data from Coinglass indicates that Ether supply on centralized exchanges has decreased by over 363,000 in the past week, totaling around 15 million. The net circulating supply is falling as more investors participate in staking programs to secure the network.
The Ethereum network currently has over 100,000 validators who have staked more than 34.3 million Ether units. Since the implementation of EIP-1559, more than 4.7 million Ether have been burned, prompting increased accumulation by whale investors.
US spot Ether ETFs have purchased over $1.3 billion worth of ETH in the last two weeks, with BlackRock’s ETHA leading the way by acquiring more than $836 million in the first week of December, marking the highest accumulation since earlier this year.
Influencing Factors for Whale Accumulation
Institutional adoption of ETH is significantly driven by the ongoing altseason. The Ethereum network leads in Web3 development, attracting investor confidence in future price increases.
The network boasts the highest total value locked (TVL) at approximately $77 billion and a stablecoins market cap exceeding $106 billion. Ethereum core developers, including co-founder Vitalik Buterin, continue to improve the network for long-term viability.
The upcoming Ethereum upgrade, Pectra, expected in early 2025, will allow users to pay gas fees using various tokens, further promoting mainstream adoption of smart contracts.