In recent weeks, Ethereum spot exchange-traded funds (ETFs) have consistently attracted positive daily inflows for 16 consecutive days. This trend has reignited optimism about Ethereum (ETH) reaching new all-time highs (ATH) in the weeks to come. However, for this milestone to be achieved, ETH must overcome a significant resistance level at $4,000.
Ethereum Spot ETFs: Steady Inflows Fueling Optimism
Data from SoSoValue indicates that Ethereum spot ETF inflows have been consistently positive since November 22. During this period, cumulative net inflows have reached an impressive $2.32 billion, with $1.5 billion added between November 22 and December 16 alone.
Weekly Inflow Breakdown
Analyzing weekly inflows, the week ending December 13 recorded net inflows of $854.85 million, closely followed by $836.69 million for the week ending December 6. As a result, the total net assets held by Ethereum ETFs have surged to $14.28 billion, accounting for approximately 2.93% of ETH’s total circulating supply.
Grayscale’s Ethereum Trust (ETHE) holds the largest stake with $5.87 billion in net assets, while Blackrock’s iShares Ethereum Trust (ETHA) follows with $4.02 billion. These substantial inflows have bolstered bullish sentiment, with Ethereum enthusiasts anticipating a potential rally to a new ATH for the world’s second-largest cryptocurrency by market capitalization.
Analyst Insights and Market Sentiment
Crypto analyst Momin Saqib recently shared insights on ETH’s price action. According to Saqib, ETH appears poised to break through the local highs in the $4,000 range and is targeting the $4,500 price level. He remarked, “Ethereum inflows have been coming in non-stop for the last few weeks! After seeing Bitcoin at $107K, it seems institutions have limited options for betting on the crypto industry’s higher upside.”
Examining Ethereum’s weekly chart, the digital asset has made several significant attempts to breach the $4,000 resistance level. While ETH briefly surpassed this level during its second attempt, reaching its current ATH of $4,878, it experienced a false breakout, leading to a prolonged bear market over the subsequent two years.
Analyst Rekt Capital highlighted that ETH’s post-breakout retest of the $3,100 price level was successful, propelling the cryptocurrency back into the $4,000 zone. Rekt Capital emphasized that ETH has maintained support above the $4,000 zone for two consecutive weeks, a key development that could pave the way for further upward momentum.
Potential Upside vs. Cautious Optimism
While the strengthening fundamentals, bullish technical indicators, and ongoing ETF inflows paint a positive picture for Ethereum, some analysts remain cautiously optimistic about ETH’s short-term price action.
Market Dynamics and Analyst Perspectives
For instance, analyst CryptoBullet suggested that ETH may experience a brief dip to $3,700 before rebounding. He noted that ETH’s ability to sustain key resistance levels indicates strong bullish momentum.
However, a potential dampener on short-term optimism is Justin Sun, founder of Tron (TRX), who recently unstaked $208 million worth of ETH from Lido Finance. This move has raised concerns about potential selling pressure. At the time of writing, ETH trades at $3,947, marking a 0.2% decline over the past 24 hours.
