Spot Ethereum ETFs break a key record: can ETH price hit $5k?

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As a seasoned researcher with a knack for deciphering market trends and an unquenchable thirst for all things crypto, I find myself increasingly captivated by the meteoric rise of Ethereum exchange-traded funds (ETFs). With my fingers perpetually poised over the keyboard, I’ve been tracking these ETF inflows with bated breath, and the recent 16-day streak has me more intrigued than ever.

Spot Ethereum exchange-traded funds broke a crucial record as their inflows continued rising.

In the past 16 days running, there has been an increase of Ethereum (ETH) ETF investments, setting a new personal best. On Friday, December 14 alone, more than $23.6 million was invested, bringing the total accumulated since their inception to over $2.26 billion.

As reported by SoSoValue, the total assets held across all Ethereum Spot ETFs exceed $13.7 billion. Among these, the Grayscale Ethereum ETF remains the largest, with more than $5.6 billion in assets under its management.

After it comes the iShares Ethereum Trust ETF, the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the VanEck Ethereum ETF, and the Franklin Ethereum ETF.

One explanation for the increase in inflows is the growing optimism that the U.S. Securities and Exchange Commission might permit staking. If this happens, ETF owners would gain from the coin’s price appreciation and the staking rewards. According to StakingRewards, the current staking return rate is approximately 3.26%.

These influxes are occurring during a period when Ethereum is experiencing growth. Currently, its value is around $4,000 and is only 25% below its record high of $4,870. It has risen by an impressive 153% from its lowest point in 2023.

The data from IntoTheBlock indicates a positive trend as well. It seems the count of active Ethereum addresses has surpassed 122.7 million, marking a new high not seen for quite some time.

As a crypto investor, I’ve noticed an interesting trend: Data suggests that the ‘big fish’ or Ethereum whales are increasingly dominating the market. Currently, these whales hold approximately 43% of all Ethereum coins, which is significantly higher than the 22% they held in November. This surge could indicate a growing optimism among these large-scale investors about the potential of Ethereum.

Ethereum price analysis: can ETH hit $5,000?

According to a recent prediction by CryptoQuant, the value of Ethereum could potentially reach $5,000 due to the balance between demand and supply forces.

On the weekly graph, it’s evident that the Ethereum price is on an upward trend, but it has repeatedly encountered resistance at approximately $4,092 – a hurdle it couldn’t surmount in both March and May.

Ether’s price has consistently stayed above its 50-week and 200-week moving averages, as well as the 23.6% Fibonacci Retracement level. This suggests that for the triple-bottom chart pattern to be invalidated, Ethereum must first overcome the resistance at approximately $4,092.

If it surpasses the current resistance point, it’s likely to reach its record high of $4,877 and then even $5,000. It requires a 25% increase to hit $5,000, which is quite feasible if the cryptocurrency market’s bullish trend persists.

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2024-12-14 17:37