Ethereum Surges Amid ETF Inflows and Staking Activity, Eyeing $4,000 Resistance
Ethereum is trading at $3,850 increasing by around 2.5%on Friday. On December 5, U.S. spot ether ETFs saw their biggest one-day inflow of $432 million, their ninth straight day of gains.
In the last two weeks, Ethereum’s price has risen to an eight-month high of $3,946, drawing more than $1.3 billion in investments to Ether ETFs.
At $296 million, BlackRock’s iShares Ethereum Trust was the largest inflow, followed by Fidelity’s Ethereum Fund at $114 million. ETH has gained 16% over the past two weeks, and analysts explain the spike to growing investor confidence in Ethereum’s future performance.
https://twitter.com/StackerSatoshi/status/1864895433631232113
The inflows suggest that institutional interest is increasing, which will increase market both prices and demand momentum for Ethereum and maybe drive it higher in the upcoming months.
Ethereum Overcomes Significant Resistance amid Inflows of ETFs and Staking
Ethereum (ETH) broke over a three-year falling trendline resistance and jumped to $3,820, although it fell 1% later on Thursday. Strong demand has been observed for ETH ETFs, with inflows of $167.7 million on Wednesday and an average of $100 million each day over the previous eight days.
Over 113,000 ETH were added to stakes protocols in just two days, indicating a jump in staking activity and investors’ desire for long-term holding. According to CME futures data, institutional players are mixing short positions for fund fee yields with ETF investments in basis trades.
Prolonged ETF inflows and rising staking point to positive attitude, which could eventually sustain Ethereum’s price stability and additional upward momentum.
Whales Increase Ethereum Holdings While Exchange Reserves Decline
Excluding exchange wallets, Santiment reports that whales, or huge Ethereum holders, have raised their holdings by about 7% over the last two weeks. Exchange-held Ethereum reserves also decreased by 2%, at 10.79 million on the November 28 to 10.57 million on Thursday.
Whales who amass more tokens tend to be more confident about potential price increases. Since there are fewer tokens available for sale due to lower exchange reserves, price growth may be supported and selling pressure lessened.
The increase in whale holdings and the decrease in exchange reserves indicate an optimistic attitude, which might raise Ethereum prices as rising demand outpaces supply.
Bitcoin Reaches $100K, Increasing Hope for Ethereum’s Future
President-elect Trump’s pro-crypto policies, such as appointing crypto supporter Paul Atkins to head the SEC, caused Bitcoin to soar beyond $100,000 for the first time. This milestone has given the cryptocurrency market a boost. The rising institutional interest in cryptocurrencies is helping Ethereum, which is frequently seen as the finest digital asset after Bitcoin.
Ethereum is probably going to witness an increase in interest from investors looking to diversify into other cryptocurrencies as the surge in Bitcoin boosts trust in digital assets. Ethereum is a major actor in the changing financial environment because of its use in DeFi and staking.
As part of a larger trend, the upward momentum in Bitcoin is expected to push Ethereum higher, drawing institutional inflows and increasing its value.
Ethereum Price Analysis: Technical Outlook
The Ethereum (ETH/USD) 4-hour chart reveals a rising channel pattern, with the price recently facing resistance near $3,905. The 50-period moving average below $3,770 acts as a support level, maintaining the bullish structure. The RSI is trending downward at 57.84, signaling potential weakening momentum, though it remains above the midline.
If the price breaks below $3,770, it could test the $3,690 support. Conversely, sustained buying pressure may propel it toward the $4,008 resistance level. Traders should monitor channel boundaries and RSI movement for further confirmation of directional bias.
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