Ether has been showcasing incredible performance during this bull season. A series of inflows into US-listed spot Ether ETFs, increased activity on the Ethereum blockchain, and heightened institutional interest may drive Ether to surpass its three-year-old price record in the upcoming months.
QCP Capital Highlights Ether’s Outperformance
According to QCP Capital, “ETH was the main outperformer yesterday as it surged 11.65% to reach a high of $3,688. This aligns with our thesis of capital rotation from BTC to ETH, as shared earlier this week.” The firm reported that ETH spot ETFs continue to exhibit strong net inflows, totaling $90.1 million in a single day and marking a four-day winning streak. These robust inflows underscore the market’s growing optimism despite recent retracements. Given that ETH has lagged behind BTC and SOL in the current rally, its recent strength supports the case for it to retest its all-time high of $4,868, a potential increase of 35.4%.
ETH ETFs Surpass Bitcoin ETF Flows
Notably, Ether ETFs attracted over $220 million during the period from November 22 to 27, as data indicates. This marks the second-longest streak of inflows since their inception in July. In contrast, spot Bitcoin ETFs recorded $35.2 million in net inflows, largely due to significant outflows on November 25. Data from intotheblock reveals that approximately 88% of Ether (ETH) holders are currently in profit, with the crypto asset’s price rising 6% over the past week—the highest percentage since June. However, traders exhibit uncertainty about the asset surpassing the $4,000 threshold, with short positions accumulating against this level. CoinGlass data suggests that up to $1.43 billion in short positions could be liquidated if Ether reaches $4,000.
Market Participants Remain Optimistic
Despite the cautious trading environment, some market participants remain optimistic about Ether’s prospects. Ash Crypto, a crypto trader, recently shared on X that Ether is “very close” to reaching $4,000. Another trader, Borovik, expressed an even loftier target, noting that he would get an Ether logo tattoo if the cryptocurrency hits $15,000 during this cycle. A pseudonymous analyst recently suggested that Ethereum (ETH) is poised to rally in both its Bitcoin (ETH/BTC) and US dollar pairs. He predicts that ETH/BTC could rise to as high as 0.4597 BTC. Regarding Ethereum against the dollar, Pentoshi believes that it is feasible for ETH to surge above $4,000. He also anticipates that the rally will be driven by investors channeling hundreds of millions of dollars into ETH ETFs. “We could see several $250-$500 million days in the near future for this [BlackRock ETH] ETF. There was a $91 million day just last week,” he noted.
Ether Set For A Rally
In the past week, Ethereum has appreciated by 7.7% to $3,590, while Bitcoin has declined by 2% to $96,780, bringing the ETH to BTC price ratio back to 0.037 BTC. Markus Thielen, the founder of 10x Research, suggested that the partial court victory of crypto privacy mixer Tornado Cash likely contributed to Ethereum’s price rally, as it remains the dominant decentralized finance (DeFi) chain. Ether’s price is poised for further upward momentum, driven by increasing investor interest and expectations of favorable crypto regulations leading into 2025, which could propel it above $4,000. The market teeters between bullish sentiments and cautious trading positions. What do you think? Will Ether break through the resistance level, or is a price correction on the horizon? Stay tuned for more updates.
