Ethereum Spot ETFs Record 16 Days of Positive Inflows Totaling $2.32 Billion
Ethereum spot exchange-traded funds (ETFs) have recorded 16 consecutive days of positive daily inflows, raising expectations for ETH to potentially reach a new all-time high (ATH). To achieve this, ETH must surpass the critical resistance level of $4,000.
Ethereum Spot ETFs Attracting Consistent Inflows
Data from SoSoValue indicates that Ethereum spot ETF inflows have been consistently positive since November 22, totaling cumulative net inflows of $2.32 billion, with $1.5 billion added between November 22 and December 16.
Weekly inflows show the week ending December 13 had net inflows of $854.85 million, followed by $836.69 million during the week ending December 6. Total net assets held by Ethereum ETFs have reached $14.28 billion, representing approximately 2.93% of ETH’s total circulating supply.
Grayscale’s Ethereum Trust (ETHE) is the largest holder with $5.87 billion in net assets, followed by Blackrock’s iShares Ethereum Trust (ETHA) at $4.02 billion. These inflows into Ethereum ETFs have strengthened bullish sentiment, leading to expectations of a potential rally towards a new ATH for Ethereum.
Crypto analyst Momin Saqib stated on X that ETH appears ready to break through local highs in the $4,000 range, targeting the $4,500 price level. He remarked on the continuous inflow of Ethereum investments, suggesting institutions are limited in options for betting on higher crypto industry upside.
Ethereum inflows have been coming in non-stop for the last few weeks! After seeing $BTC at $107K... I think institutions don’t have much options left to bet on higher upside of crypto industry! Higher!
Examining Ethereum’s weekly chart reveals four significant attempts to breach the $4,000 resistance level. Although it briefly exceeded this level during its second attempt, reaching an ATH of $4,878, it resulted in a false breakout followed by a prolonged bear market.
Analyst Rekt Capital pointed out that ETH's successful retest of the $3,100 price level has allowed it to return to the $4,000 zone, maintaining support above this level for two consecutive weeks, which could lead to further upward movement.
Despite The Potential Upside, ETH Traders Remain Cautious
While strengthening fundamentals and bullish technical indicators create a favorable outlook for Ethereum, some analysts express caution regarding ETH's short-term price movements.
Analyst CryptoBullet noted that ETH may experience a quick dip to $3,700 before bouncing back, emphasizing that holding above key resistance levels indicates strong bullish momentum.
Concerns about short-term optimism include Justin Sun, founder of Tron (TRX), who recently unstaked $208 million worth of ETH from Lido Finance, potentially creating selling pressure. As of now, ETH trades at $3,947, reflecting a 0.2% decline in the past 24 hours.
