Ethereum price today: $4,030
Bybit noted that since the US election, Ethereum has become more attractive to investors than Bitcoin. The Ethereum ETF attracted $428.5 million, marking the highest single-day net inflow ever. If Ethereum breaks above the year-to-date high resistance level at $4,093, it could soon reach a new all-time high.
Ethereum (ETH) traded above $4,000 on Friday for the first time since March, following record ETF inflows and growing investor preference for Bitcoin.
Investors tend to prefer Ethereum over Bitcoin
Ethereum has outperformed Bitcoin since the U.S. election, and its growth has accelerated since SEC Chairman Gary Gensler announced he would step down on January 20, Bybit said in a Dec. 5 Volatility Review. pointed out in the report. The report noted that traders have begun to reallocate their preferences to ETH, as evidenced by notable changes in the ETH/BTC ratio.
The ratio rose from a low of 0.31 on Nov. 19 to more than 0.4 on Friday. ETH's outperformance against Bitcoin has also reduced Bitcoin's dominance, leading to speculation that an altcoin season may be starting.
ETH/BTC daily chart
“The option pricing bias has changed in favor of both BTC and ETH calls, but the ETH bias remains stronger,” Bybit wrote. “This suggests that bullish sentiment towards ETH is strong as traders are positioning more aggressively against ETH price increases compared to Bitcoin.”
Meanwhile, Ethereum rose above $4,000 on Friday for the first time since March, following a significant increase in demand from institutional investors through ETFs.
The Ethereum ETF attracted $428.5 million on Thursday, marking the highest single-day net inflow ever, according to data from Coinglass. These products have now recorded nine consecutive days of positive inflows, with cumulative net inflows exceeding the $1 billion mark since launch.
Ethereum price prediction: ETH is likely to reach a new all-time high if it overcomes the annual high price resistance line
Ethereum rose more than 5% in the past 24 hours, triggering $75.14 million worth of futures liquidations, according to data from Coinglass. The amount of liquidated long positions amounted to $44.6 million, and the amount of liquidated short positions amounted to $30.54 million.
ETH is testing the year-to-date high resistance at $4,093 after breaking above the upper resistance of the downtrend line of the cup-and-handle pattern.
ETH/USDT weekly chart
If ETH can overcome this resistance, the rally could extend to the all-time resistance level at $4,868. A successful move above $4,868 could send ETH up to $5,627.
The Relative Strength Index (RSI) and Awesome Oscillator (AO) momentum indicators are above neutral levels, indicating that bullish sentiment prevails.
This hypothesis will be invalidated if the closing price of the weekly candlestick falls below the $2,817 support level.
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.
