Ethereum price today: $3,800
The Ethereum ETF's inflow streak extended to 12 consecutive days as whales' holdings increased by 340,000 ETH. Despite bullish sentiment across the spot market, ETH options suggest a neutral market. All eyes are on Ethereum as it moves towards new year-to-date highs after bouncing off the $3,550 level.
Ethereum (ETH) rose 6% on Wednesday, bouncing off support levels near $3,550. The spot market shows that institutional investors and whales maintain bullish sentiment, potentially picking up ETH at lower prices during the recent decline.
Ethereum ETF and currency flows show bullish sentiment
The U.S. Spot Ethereum exchange-traded fund (ETF) recorded inflows of $305.7 million on Tuesday, extending its 12th consecutive day of positive flows, according to data from Coinglass. With sustained inflows, the cumulative inflow amount increased to $1.87 billion.
In particular, BlackRock's iShares Ethereum ETF (ETHA) has seen inflows for eight consecutive days, attracting more than $1.05 billion, bringing the total inflow to nearly $3 billion. This puts ETHA among the top four ETFs to launch in 2024, even though it only launched in Q3.
Meanwhile, investors have withdrawn more than 130,000 ETH from exchanges in the past seven days following the recent price drop.
ETH Exchange Reserve | CryptoQuant
During the same period, Whale’s holdings increased by more than 340,000 ETH. The buying pressure could be coming from bulls who saw the decline as an opportunity to scoop up ETH at a lower price.
ETH supply held by whales (excluding exchanges) | Santiment
Despite the bullish momentum sentiment in the spot market, ETH options are showing neutral market sentiment.
In a report on Tuesday, Shaun Dawson, head of research at crypto options exchange Deliv, said the probability of ETH hitting a new all-time high and reaching the $5,000 level by December 27th is up from 16% of its peak. He pointed out that it had fallen to about 8%.
“ETH call and put trades are evenly distributed, suggesting market sentiment is neutral,” Dawson said.
Ethereum price prediction: ETH eyes on new yearly highs
ETH rebounded from the support level near $3,550 and regained the $3,730 level. The top altcoin is currently trying to break above the major downtrend line extending from November 2021.
If ETH sustains heavy movement above this downtrend line, it could retest the yearly high resistance at $4,093.
ETH/USDT daily chart
ETH could overcome the $4,093 resistance level as most of the sellers at this level have been wiped out by selling activity over the past four days. However, failure to break above this resistance will establish it as a key sell level for traders and send ETH towards support levels near $3,550.
The Relative Strength Index (RSI) is above the neutral level and in an uptrend, indicating increasing bullish momentum.
If the daily candlestick closes below $3,550, the theory is invalidated.
Frequently asked questions about Ethereum
Ethereum is a decentralized open-source blockchain with smart contract capabilities. Its native currency, Ether (ETH), is the second largest cryptocurrency by market capitalization and number one among altcoins. The Ethereum network is tailored for building cryptographic solutions such as decentralized finance (DeFi), GameFi, non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs).
Ethereum is a public decentralized blockchain technology that allows developers to build and deploy functional applications without the need for a central authority. To facilitate this, the network leverages the Solidity programming language and the Ethereum virtual machine, allowing developers to create and launch applications with smart contract functionality.
A smart contract is a publicly verifiable piece of code that automates an agreement between two or more parties. Essentially, these codes self-execute the coded actions if a given condition is met.
Staking is the process of earning revenue from idle crypto assets by locking them in a cryptographic protocol for a specified period of time as a means of contributing to security. Ethereum transitioned from Proof of Work (PoW) to Proof of Stake (PoS) consensus mechanism on September 15, 2022 in an event dubbed “Merge”. This merger was an important part of Ethereum's roadmap to achieve high levels of scalability, decentralization, and security while maintaining sustainability. Unlike PoW, which requires the use of expensive hardware, PoS reduces the barrier to entry for validators by leveraging the use of cryptographic tokens as the core foundation of the consensus process.
Gas is a unit that measures the transaction fees users pay to conduct transactions on Ethereum. When the network is congested, gas can be very high and validators may prioritize transactions based on fees.
