Ethereum price today: $3,570
Ethereum investors have purchased over $1.2 billion worth of ETH from exchanges in the past five days. Ethereum investment products reached a record high of $2.2 billion in net inflows in 2024. Ethereum could counter the all-time high resistance at $4,868 if the rounded bottom pattern holds.
Ethereum (ETH) fell 1% on Tuesday despite heavy accumulation across spot exchanges and investment products. If the number one altcoin sustains its rounded bottom pattern and overcomes major trendline resistance, it could rally toward the all-time high resistance at $4,868.
Ethereum investors withdrew $1.2 billion of ETH from exchanges as investment product sets new record
Ethereum investors have accumulated over 330,000 ETH, worth about $1.2 billion, from exchanges in the past five days, according to CryptoQuant data.
The ETH exchange reserve, which measures the total amount of coins held on exchanges, has been trending downward since November 28th. As the value of coins in exchange reserves declines, it shows an increase in buying activity among investors.
ETH Exchange Reserve | CryptoQuant
According to data from Coinglass, the US Spot Ethereum ETF recorded inflows of $24.2 million on December 2, marking the sixth consecutive day of positive flows.
According to CoinShares' Digital Asset Weekly Report, activity in Ethereum investment products is also increasing globally, with $634 million in inflows last week.
CoinShares analysts added that the heavy inflows brought annual net inflows to $2.2 billion, breaking the 2021 record of about $2 billion.
Meanwhile, Ethereum co-founder Vitalik Buterin outlined suggestions that wallet developers can implement to improve the user experience of cross-L2 transactions, wallet security, and privacy. He also discusses how clients engaged in artificial intelligence (AI), brain-computer interfaces, and proactive defense are forcing developers to rethink how wallet experiences work over time. He also emphasized the importance of being forced to do something.
“Users can only benefit from the decentralization, censorship resistance, security, privacy or other properties that Ethereum and its applications offer if the wallet itself also has these properties,” Buterin said. he said in a blog post.
Ethereum Price Prediction: ETH could challenge all-time high resistance if it maintains round bottom pattern
Ethereum is trading near $3,570, with $49.13 million in liquidations occurring in the past 24 hours, according to Coinglass data. Liquidated positions include long and short positions of $37.62 million and $11.52 million.
After seeing a rejection near the resistance of the downtrend line, Ethereum is testing the $3,578 level and validating the bottom move above this level last week.
ETH/USDT daily chart
If ETH rebounds from the $3,578 or $3,410 support levels, it could once again challenge the resistance of the downtrend line. Above this level, ETH could complete a rounded bottom pattern with an increase of over 35% and challenge the all-time high resistance at $4,868.
The Relative Strength Index (RSI) is above the neutral level and in a downtrend, indicating that the bullish momentum is weakening.
The bullish theory will be invalidated if the daily candlestick falls below $3,410.
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.
