Ethereum price today: $3,570
If Ethereum ETF net inflows increase, ETH could test the all-time high resistance level at $4,868. Ethereum investors are showing their appetite for risk as long ETF holdings powered by VolatilityShares soared 160%. To sustain the bullish structure, ETH needs to sustain above $3,400 and the 50-day SMA.
Ethereum is down 1% on Thursday and could rally towards an all-time high of $4,868 following increased interest from institutional investors. This is evidenced by the buying pressure across ETH ETFs and leveraged products.
Growing interest from institutional investors in Ethereum
Ethereum has become a hot topic among investors over the past week due to continued high demand from institutional investors.
The ETH ETF recorded its fourth consecutive day of positive inflows after posting $90.1 million in net inflows on Wednesday. This brought cumulative net inflows to $243 million, despite Grayscale's ETHE outflows of more than $3.37 billion.
“These healthy inflows highlight growing market optimism despite this week's retrace,” QCP analysts said in a note Thursday. “Given that ETH has lagged behind BTC and SOL in the current bull market, its recent strength supports the possibility of ETH retrying its all-time high of $4,868 (+35.4%). ” they added.
Ethereum investors have also shown increased risk appetite over the past three weeks.
“Since November 5th, the ETH equivalent exposure of the VolatilityShares 2x Leveraged Long ETH ETF (ETHU) has increased by 278,150 ETH (+160%!),” Vettle Runde, head of research at K33 Research, wrote in an X post on Thursday I wrote it in As a result, VolatilityShares ETH holdings exceeded 50% of CME's open interest.
ETHU Holdings | K33 Research
However, as prices rise, investors may be tempted to sell some of their holdings and lock in profits.
For example, Ethereum co-founder Jeffrey Wilke may have sold some of his ETH holdings on Thursday. According to crypto analysis platform Arcam, Wilke deposited 20,000 ETH worth $72.5 million with Kraken. Wilke still holds 106,000 ETH, worth about $384 million.
Ethereum price prediction: $3,400 support and 50-day SMA important to maintain bullish structure
Ethereum fell 1% after continuing to liquidate $55.45 million in the past 24 hours, according to data from Coinglass. The long and short positions liquidated were $25.79 million and $29.65 million, respectively.
On the 4-hour chart, Ethereum showed rejection when approaching the $3,732 resistance level and is currently testing the support of the key uptrend line.
ETH/USDT 4 hour chart
If the top altcoin continues to fall, it could find support near the $3,400 level and 50-day simple moving average (SMA). A rebound from this level could allow ETH to test the $3,732 resistance level.
However, a fall below $3,400 could send ETH towards $3,000, the psychological level that buyers have been guarding for the past two weeks.
Meanwhile, Coinglass data shows that ETH's highest liquidation leverage is concentrated around the price $3,526, implying that the top altcoins could see higher volatility as they approach this price level. I am doing it.
The Relative Strength Index RSI and the Stochastic Oscillator Momentum Indicator are above the neutral level, indicating that bullish momentum remains prevalent.
This theory will be invalidated if the candlestick falls below $2,817.
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. Gas can be very expensive when the network is congested, leading validators to prioritize transactions based on fees.
