Ethereum price today: $3,820
Ethereum whales are hitting exchanges with intense buying pressure, as evidenced by on-chain coin flows. The Ethereum ETF's record inflows increased for seven consecutive days, the highest since its inception. Ethereum is completing a move that could trigger a rally towards an all-time high of $4,868.
Ethereum (ETH) rose 7% on Wednesday as whales ramped up buying activity across exchanges and ETH exchange-traded funds (ETFs). If this trend continues and ETH completes the cup-and-handle pattern, it could continue to break above the all-time resistance level at $4,868.
Ethereum whales lead buying activity amid strong ETF inflows
Ethereum whales have exhibited various on-chain behaviors over the past five days. Whales holding 100,000 to 1 million ETH depleted their holdings by 490,000 ETH, while whales holding 10,000 to 100,000 ETH increased their holdings by 460,000 ETH. On December 4th, the total number of Ethereum holders also increased to 133.21 million, demonstrating the growing interest of investors in top altcoins.
ETH Holder (100K to 1M and 10K to 100K) | Santiment
This indicates a potential flow of coins from institutions such as crypto exchanges to retail whales, as evidenced by the depletion of exchange reserves. If this trend continues, whale buying activity could push ETH price towards the all-time high resistance level at $4,868.
ETH Exchange Reserve | CryptoQuant
According to Ultrasound.money, the circulating supply of ETH has also been on the decline over the past few days, decreasing by 1,000 ETH. This indicates that the number of ETH being burned is increasing. If ETH supply growth declines while bullish momentum is increasing, the opposite price reaction will occur.
Similar bullish sentiment is evident in ETH staking flows, which have seen inflows for four consecutive days. When investors lock their assets into a staking protocol, it suggests long-term holding potential and reduces selling pressure.
ETH Staking Flow | Into the Block
Meanwhile, the US Spot Ethereum ETF recorded net inflows of $132.6 million, marking its seventh consecutive day of positive flows for the first time since its inception. Grayscale Ethereum Trust (ETHE) saw net inflows of $733 million despite outflows of $3.42 billion due to increased institutional buying activity recently, according to Coinglass data This has been reached.
Ethereum price prediction: ETH is on the verge of a decisive trend change
Ethereum has risen 7% in the past 24 hours, causing more than $62.87 million in futures liquidations. The long and short positions liquidated were $15.49 million and $47.38 million, respectively.
Ethereum is testing resistance on the key symmetrical triangle downtrend line extending from November 8, 2021. If ETH sustains a large amount of movement above this trend line, it could rise to complete a short-term round bottom move and test the all-time high resistance at $4,868.
ETH/USDT weekly chart
A successful rally above all-time highs could validate the cup-and-handle pattern and allow ETH to maintain its long-term rally.
The Relative Strength Index (RSI) and Awesome Oscillator (AO) are above the neutral level, indicating that bullish momentum is prevailing.
If the daily candlestick closes below $3,400, the theory will be invalidated and ETH will be sent to find support near $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.
