Ethereum Spot ETFs Witness Unbroken 16-Day Inflow Streak: New ETH ATH Soon?
The Ethereum spot exchange-traded fund (ETF) has recorded positive daily inflows for 16 days in a row, reigniting optimism that ETH could hit an all-time high (ATH) in the coming weeks. However, for ETH to reach this milestone, it must break through the key resistance level of $4,000.
Ethereum spot ETF continues to attract capital inflows
Data from SoSoValue shows that Ethereum spot ETF inflows have continued to remain positive since November 22. Cumulative net inflows totaled US$2.32 billion, a significant increase of US$1.5 billion between November 22 and December 16 alone.
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In terms of weekly capital inflows, net inflows for the week ending December 13 were US$854.85 million, followed by net inflows of US$836.69 million for the week ending December 6. In addition, the total net assets held by Ethereum ETFs have climbed to $14.28 billion, equivalent to 2.93% of the total circulating supply of ETH.
Grayscale’s Ethereum Trust (ETHE) ranks first with net assets of $5.87 billion, followed by Blackrock’s iShares Ethereum Trust (ETHA) with net assets of $4.02 billion. Heavy inflows into the Ethereum ETF have boosted bullish sentiment, with Ethereum bulls anticipating that the second-largest cryptocurrency by market capitalization could rally to a new ATH.
Cryptocurrency analyst Momin Saqib took to X to share his views on ETH price trends. analyst famous ETH appears poised to break above the local highs in the $4,000 range and target the $4,500 price level. He added:
Ethereum has seen a steady flow of inflows over the past few weeks! After seeing Bitcoin USD $107k… I don’t think institutions have many options to bet on higher upside in the cryptocurrency industry! higher!
Looking at Ethereum’s weekly chart, the digital asset has made four attempts to break above the $4,000 resistance level. While it briefly broke above this level on its second attempt, creating a current high of $4,878, it ultimately proved to be a false breakout, followed by a prolonged bear market over the next two years.
Analyst Rekt Capital pointed out that ETH successfully retested the $3,100 price level after breaking out, pushing the cryptocurrency back to the $4,000 area. They highlighted that ETH has held above the $4,000 area as support for the second consecutive week, a key development that could pave the way for further upward momentum.
ETH traders remain cautious despite potential upside
although strengthen basic knowledge, bullish Technical indicators as well as continued ETF inflows paint a positive outlook for Ethereum, with some analysts remaining cautiously optimistic about ETH’s short-term price action.
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For example, analyst CryptoBullet emphasize ETH may quickly rise to $3,700 before rebounding. The analyst added that ETH’s ability to hold above key resistance points to its strong bullish momentum.
Another factor that may dampen short-term optimism is Tron (TRX) founder Justin Sun, who recently unmortgaged Lido Finance offers $208 million worth of ETH. The move raised concerns about potential selling pressure. As of press time, ETH was trading at $3,947, down 0.2% in the past 24 hours.
Featured images from Unsplash, charts from SoSoValue, X and TradingView.com
