Ethereum price today: $3,870
Recent consistent inflows into Ethereum ETFs could push ETH to new highs, much like Bitcoin ETFs pushed Bitcoin to new highs. The increase in network activity has increased the fees consumed on Ethereum, leading to a contraction of the growing ETH supply. Ethereum needs to overcome selling pressure at the psychological level around $4,000.
Ethereum (ETH) rose 1% on Thursday, aiming to counter selling pressure at a psychological level around $4,000. On-chain data shows that bullish momentum for ETH is starting to build and the price could rise to all-time highs above $5,000.
Increased Ethereum ETF flows and network activity could propel ETH to all-time highs
In a report on Wednesday, CryptoQuant analysts highlighted that Ethereum could rise above $5,000 if supply and demand continue to develop.
Since hitting a low of 2.716 million ETH in September, the Ethereum exchange-traded fund (ETF) has experienced significant growth, rising to an all-time high of 3.43 million ETH. “This trend could have a wide-ranging impact on Ethereum price trends, as sustained buying pressure from ETFs could contribute to upward price momentum,” CryptoQuant analysts noted. .
Ethereum ETF past holdings
Given that Bitcoin has hit new all-time highs since the launch of the Bitcoin ETF, recent ETF flows mark the first time we've seen sustained inflows into the product, and Ethereum may soon follow suit. There is a possibility of gaining bullish sentiment.
Notably, the ETH ETF recorded $102 million in inflows on Wednesday, extending its streak of positive inflows to 13 consecutive days.
Meanwhile, Ethereum network activity showed a notable increase in 2024, with the total number of daily transactions increasing from 5 million the previous year to 6.5 million to 7.5 million. The total number of contract calls on the main chain also increased in 2024.
According to CryptoQuant data, increased network activity has led to an increase in ETH consumption due to transaction fees, increasing from 80 ETH on August 30 to 2.7 KETH in December. This has slowed down the rate of ETH supply growth over the past few months (which accelerated after the Dencun upgrade in March).
Total Ethereum supply and fees consumed
In conclusion, the analysts noted that ETH’s realized price-based valuation metrics indicate that the top altcoin has the potential to grow to an upper limit of $5,200 in the current market cycle.
Ethereum Price Prediction: ETH faces major hurdle near psychological level $4,000
Ethereum is up 1% after sustaining $57.17 million in liquidations in the past 24 hours, according to Coinglass data. Total long positions liquidated were $26.4 million and short liquidations were $30.77 million.
The top altcoin has broken above the upper bound of a major downtrend line. If it continues to rise, it will face a major hurdle around $4,000, a psychological level that has seen strong selling pressure in the past.
ETH/USDT daily chart
Above $4,093, ETH will set a new yearly high. However, if rejected, the price could head towards the $3,550 level.
The Relative Strength Index (RSI) and Stochastic Oscillator momentum indicators are above neutral levels, indicating that bullish sentiment is prevailing.
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.
