Ethereum (ETH) Price Aims to Retest ATH, US Spot Ether ETFs Reports Record Weekly Cash Inflow of Over $836M

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As a seasoned analyst with over two decades of experience in the crypto market, I’ve witnessed countless bull runs and bear markets. The current rally of Ethereum (ETH) has caught my attention, not just because of its impressive 30% surge in the past three weeks, but also due to its technical indicators suggesting a possible push towards its all-time high (ATH).

During this current altcoin surge, Ethereum (ETH) has shown signs of a significant long-term upward trend. This leading altcoin, valued at approximately $465 billion, has seen an increase of over 30% in the past three weeks and reached a notable milestone of around $4K. This impressive rally has resulted in Ether’s price against the USD achieving its highest weekly close since December 2021, indicating that the bulls are currently dominating the market.

Looking at technical analysis, Ether’s price appears poised to surge towards its previous record high of around $5K. Notably, Ether finished last week above a significant falling logarithmic trendline for the first time since the start of the 2022 cryptocurrency bear market.

As a crypto investor, I’m aware that Ether’s price might experience a mid-term correction, potentially dropping toward the support level of approximately $3,724. This correction could be a retest of our recent bullish breakout before resuming its upward trend.

4,000 dollars marking a weekly close for Ethereum indicates a definite sign of the breakout from the large cup-and-handle pattern that started in November 2021.

Upcoming Ethereum price predictions:

Timeframe: by…

— venturefounder (@venturefounder) December 8, 2024

Ethereum Whales Scrumbles for More Assets

Over the past week, I’ve observed a significant decrease in the overall supply of Ether on centralized exchanges, with approximately 363,000 Ether being withdrawn, leaving around 15 million Ethereum in circulation. This trend is largely attributed to an increasing number of investors participating in the staking program, aiming to secure the network.

Currently, there are over 100,000 validators on the Ethereum network who have staked over 34.3 million units of Ether. Since the introduction of EIP-1559, approximately 4.7 million Ether has been burned, leading to an increase in the rate at which large investors (whales) are accumulating Ethereum.

For example, Over the last fortnight, U.S. exchange-traded funds specializing in Ethereum (ETH) have purchased over $1.3 billion worth of ETH. In the first week of December alone, BlackRock’s ETHA fund amassed the most – approximately $836 million, which is the highest since the initial approval earlier this year.

Factors Influencing Whales’ Accumulation of Ether

Institutional investors are increasingly embracing Ethereum (ETH) due to the current altcoin season. Given that Ethereum dominates the web3 development space, there’s a growing trend among investors to wager on its positive price movements.

Additionally, it’s worth noting that the Ethereum network boasts a staggering total value locked (TVL) of approximately $77 billion and a substantial stablecoins market capitalization exceeding $106 billion. This network, under the guidance of co-founder Vitalik Buterin and his team of core developers, is consistently being refined to maintain its competitive edge in the long term.

In other words, the upcoming Ethereum update known as Pectra, scheduled for around early 2025, allows network participants to use various tokens to cover transaction fees. This change aims to promote broader acceptance of smart contracts in mainstream markets.

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2024-12-09 13:46