Ethereum spot exchange-traded funds (ETFs) have logged 16 consecutive days of positive daily flows, renewing optimism for ETH’s potential new all-time high (ATH) in the coming weeks. However, for ETH to reach this milestone, it must break through the critical resistance level of $4,000.
Ethereum spot ETFs attract constant flows
Ethereum spot ETF flows have been consistently positive since November 22, according to data from SoSoValue. Cumulative net inflows total $2.32 billion, with a significant $1.5 billion added between November 22 and December 16 alone.
Related reading
Breaking it down by weekly inflows, the week ended December 13 saw a net inflow of $854.85 million, followed by an increase of $836.69 million during the week ended December 6. Additionally, the total assets held by Ethereum ETFs have reached $14.28 billion, representing approx. 2.93% of the total circulating supply of ETH.
Grayscale’s Ethereum Trust (ETHE) is the largest holder with net assets of $5.87 billion, followed by BlackRock’s iShares Ethereum Trust (ETHA) with $4.02 billion. These strong flows in Ethereum ETFs have fueled bullish sentiment, with Ethereum bulls anticipating a possible rally to a new ATH for the second-largest cryptocurrency by market cap.
Crypto analyst Momin Saqib took to X to share his thoughts on ETH price action. the analyst noted That ETH seems poised to break the local highs of the $4,000 range and is eyeing the $4,500 price level. He added:
Ethereum has been flowing non-stop for the past few weeks! After watching $BTC At $107K… I think organizations don’t have many options left to bet on the high end of the crypto industry! High!
Looking at Ethereum’s weekly chart, the digital asset has made four significant attempts to break the $4,000 resistance level. While it briefly surpassed this level during its second attempt, making its current ATH $4,878, it ultimately proved to be a false breakout, followed by a prolonged bear market over the next two years.
Analyst Rect Capital noted that ETH’s post-breakout retest of the $3,100 price level was successful, prompting the cryptocurrency back into the $4,000 zone. They highlighted that ETH held above the $4,000 zone as support for the second week in a row, a key development that could pave the way for further momentum.
Despite the potential upside, ETH traders remain cautious
While strength foundation, bullish While technical indicators, and continued ETF flows paint a positive picture for Ethereum, some analysts remain cautiously optimistic about ETH’s short-term price action.
Related reading
For example, the analyst CryptoBullet emphasized That ETH could sell off quickly to $3,700 before rebounding. The analyst added that ETH’s ability to hold above key resistance levels indicates its strong bullish momentum.
Another factor potentially dampening short-term optimism is Justin Sun, founder of Tron (TRX), who recently unblemished $208 million worth of ETH from Lido Finance. The move has raised concerns about potential sales pressure. ETH trades at $3,947 at press time, down 0.2% in the past 24 hours.
Featured images from Unsplash, charts from SoSoValue, X and TradingView.com
