ETH price immediately rises to $4,000 as inflows into Ethereum ETFs increase again

Ethereum’s native cryptocurrency ETH has yet to join the altcoin market rally, while competitors such as XRP, Cardano (ADA), and BNB have posted strong gains. ETH price is holding steady at around $3,700 as investors predicted an immediate rise to $4,000 as inflows into Ethereum ETFs surged again.

Will ETH price rise to $4,000 soon?

While Ethereum has failed to rally this altcoin season compared to competitors such as XRP, ADA and BNB, bulls have defended strong ETH support levels.

Crypto analyst IncomeSharks noted that Ethereum’s daily support remains intact, increasing confidence in holding previously entered positions. “I wouldn’t chase ETH at this level, but for now daily support holds,” the analyst noted.

Highlighting his commitment to on-chain utility plays, the analyst set a bearish threshold at $3,200, suggesting that a fall below this level would trigger a sell-off in Ethereum. On the other hand, IncomeSharks is sticking to its short-term target of $4,000 or more for Ethereum.

On the multi-year chart, ETH price has also formed a huge cup-and-handle pattern since November 2021. However, Ethereum must first confirm its breakout above $3,800, which will set the stage for future explosive growth. Analysts estimate the price target at $7,346 based on the pattern’s historical reliability in predicting significant gains.

At press time, ETH price is up 2.15% at $3688.51 with a market cap of $444 billion. Ethereum on-chain volume rose to $183.7 billion in November, marking its highest monthly total since the start of 2021 and a 9% increase from the previous annual peak in March.

This growth highlights significant capital rotation into on-chain activity, driven in part by a resurgence in Ethereum-based NFT trading. Ethereum-based NFT marketplaces recorded their highest volumes since June.

Spot inflows into Ethereum ETFs are increasing again

Inflows into the Spot Ethereum ETF remain strong and show another increase on Tuesday, December 3rd. After Monday’s $24 million inflows, net inflows rose to $132 million on Tuesday, led by Fidelity’s FETH and BlackRock’s ETHA.

FETH recorded net inflows of $73.7 million, while ETHA recorded inflows of more than $65.3 million. The positive factor was that outflows from Grayscale’s ETHE fell significantly to $6.4 million from more than $44.3 million the day before, according to data from Farside Investors.

The BlackRock Ethereum ETF has already seen $2.2 billion in inflows since launch, while Fidelity’s FETH is close to hitting $1 billion. Last Friday, Ether ETF daily inflows also exceeded Bitcoin ETF daily inflows. This has become the catalyst for a recent surge in ETH price.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a strong understanding of financial markets. His interest in business and finance has led him to focus on the emerging blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he has acquired. In his free time, Bhushan enjoys reading thriller novels and occasionally exploring his cooking skills.

Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.