Ethereum (ETH) Price Nears $3,500 Breakout as Monthly Inflows Cross $2B

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As a seasoned researcher with over a decade of experience in the cryptocurrency market, I have witnessed the ebb and flow of digital assets like Bitcoin and Ethereum. Having closely followed the crypto landscape since its inception, I must say that the current bullish trend in Ethereum is reminiscent of the 2017 bull run, albeit with a more mature and robust ecosystem this time around.

The $3,500 psychological mark seems to be a significant hurdle for Ethereum, as it faces resistance from both technical indicators and market psychology. However, the strong buying pressure demonstrated by institutions, such as Blackrock, gives me optimism that ETH could indeed cross this barrier.

In terms of Ethereum flipping Bitcoin, while it still seems like a distant dream at present, the growing institutional support for Ethereum and its potential to outperform other tokens could pave the way for this once-impossible scenario.

Joke: In my early days in crypto, I remember wishing for $3,500 as the price of a single Bitcoin. Now, I find myself hoping that Ethereum crosses the same mark! The world of cryptocurrency sure has come a long way since then!

As a crypto investor, I’m seeing positive signs with Ethereum (ETH) making its way towards the $3,500 mark, a significant psychological level. In the last 24 hours, it has surged by 4.16%, indicating a promising bullish trend. The market cap of Ethereum stands at an impressive $418.71 billion, and in the same period, the trading volume reached $17.66 billion.

Looking ahead, it appears that Ethereum’s price may soon undergo a significant shift in direction, with indications suggesting it could surge past the $4,000 threshold as part of the New Year’s rally.

Will ETH Prices Cross the $3,500 Supply Zone?

On the 4-hour chart, Ethereum’s upward surge signifies a breakaway from a period of sideways movement or consolidation. This consolidation phase occurred within a range that spanned from the bottom support at $3,323 to an upper resistance at $3,415.

Over the past four hours, Ethereum price has seen a strong upward trend, forming seven consecutive bullish candles on the chart. This suggests a resurgence of bullish sentiment in Ethereum, as it moved upwards from the 23.60% Fibonacci level towards challenging the 38.20% level.

Coordinating with the upper Fibonacci resistance, the 200 Exponential Moving Average (EMA) line functions as a fluid resistance barrier. After a brief period of price stabilization, the 38.20% Fibonacci level plays a significant role in serving as short-term resistance for ETH prices.

In simple terms, the significant Fibonacci resistance level aligns with the $3,500 psychological barrier, which is an area of potential heavy selling. If the current upward trend continues and manages to break through $3,521 with a bullish close, it could indicate a change in direction or reversal.

Anticipating a strong recovery, the 4-hour Relative Strength Index (RSI) line is nearing the overbought threshold, indicating an increase in buying demand. Should the altcoin surpass its immediate resistance zone, it could potentially reach the 78.60% Fibonacci level around $3,900.

In simple terms, reaching $4,000 for Ethereum in early January 2025 could be greatly boosted by this scenario. However, if the bullish momentum falters and Ethereum fails to break through its supply zone, then we might see an extension of the current range, with the lower boundary holding steady at approximately $3,338, which corresponds to a key Fibonacci support level.

Blackrock Hypes the Institutional Support for Ethereum

For the last month, institutions seized upon the 10.15% dip as a chance to buy at a reduced price. By December 2024, these Ethereum ETFs accumulated a total of approximately $2.08 billion through investor inflows.

Inflows into Blackrock’s ETHA fund have nearly doubled compared to November’s total, driving the recent rally. Over a stretch of 13 consecutive days, the ETHA fund recorded positive net inflows amounting to $1.4 billion.

After that, FETH from Fidelity saw $752 million flow in. The growing institutional interest in Ethereum has made the idea of Ethereum surpassing Bitcoin less of a hot topic in the cryptocurrency sphere.

(This sentence maintains the same meaning but presents it in a more conversational style, making it easier for readers to understand.)

Is Ethereum Flippening Possible?

The term “Ethereum flipping” signifies a hypothetical scenario where Ethereum’s market capitalization exceeds that of Bitcoin, often referred to as “digital gold.” At the moment, this is still considered an aspiration rather than reality, given that Bitcoin’s market cap hovers around $2 trillion, while Ethereum’s is approximately $418 billion.

If Ethereum’s market capitalization surpasses Bitcoin’s by nearly five times, it would signal a significant upward trend (bull run) for Ethereum. However, the likelihood of this “flippening” event has decreased since the 2017 bull market.

The likelihood of Ethereum surpassing Bitcoin in terms of market value reached a high of 81.5% on June 19, 2017, and hovered around 50% during the cryptocurrency bull run in 2021. However, following a drop in Ethereum’s price and an upward trend in Bitcoin due to the ETF listing and the “Trump pump” period, the probability of this event has dropped to approximately 22.22%.

Although it’s estimated that the “flippening” (a term for when Ethereum’s market capitalization exceeds that of Bitcoin) is about 3 years and 327 days off, a recent dip suggests that Ethereum hasn’t been performing as well as Bitcoin in the short term.

Despite the wider financial market expecting an upturn in altcoins, the Ethereum to Bitcoin graph hints at a potential bullish recovery.

Even though Ethereum dropped by 7.13% compared to Bitcoin in December, its weekly chart suggests a possible recovery through a double-bottom pattern. The bullish trend is further supported by a bullish divergence seen in the weekly Relative Strength Index (RSI) line.

As a researcher examining the cryptocurrency market, I’ve noticed that Ethereum has consistently surpassed numerous other tokens in terms of price performance. The imminent breakout above the short-term resistance level promises to test a long-held resistance around 0.04619 BTC.

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2025-01-02 16:20