Ethereum Price Forecast: ETH eyes new yearly high as whale and institutional holdings increase
Ethereum price today: $3,800
- Ethereum ETFs stretched their inflow streak to 12 consecutive days as whale holdings grew by 340K ETH.
- ETH options suggest a neutral market despite the bullish sentiment across the spot market.
- Ethereum eyes move toward a new yearly high after bouncing off the $3,550 level.
Ethereum (ETH) is up 6% on Wednesday after bouncing off the support level near $3,550. The spot market shows institutional investors and whales maintained a bullish sentiment, potentially scooping up ETH at lower prices during the recent dip.
Ethereum ETFs and exchange flows indicate bullish sentiment
US spot Ethereum exchange-traded funds (ETFs) recorded inflows of $305.7 million on Tuesday, stretching their streak to twelve consecutive days of positive flows, per Coinglass data. The sustained inflows have boosted their cumulative flows to $1.87 billion.
Notably, BlackRock's iShares Ethereum ETF (ETHA) has seen eight consecutive days of inflows, raking in over $1.05 billion and stretching its cumulative flows to nearly $3 billion. This puts ETHA among the top four ETF launches of 2024 despite only going live in the third quarter.
On the other hand, investors withdrew over 130K ETH from exchanges in the past seven days following the recent price decline.
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ETH Exchange Reserve | CryptoQuant
In the same period, whale holdings grew by over 340K ETH. The buying pressure may have come from bulls who saw the dip as an opportunity to scoop up ETH at lower prices.
 [19.18.16, 11 Dec, 2024]-638695398497313139.png)
ETH Supply Held by Whales (Exchanges Excluded) | Santiment
Despite the bullish momentum sentiment in the spot market, ETH options signal a neutral market sentiment.
In a Tuesday report, Sean Dawson, head of research at crypto options exchange Derive, noted that the probability of ETH smashing its all-time high and hitting the $5,000 level by December 27 had declined to around 8% from a peak of 16%.
"The trading of calls and puts for ETH is evenly distributed, suggesting a neutral market sentiment," said Dawson.
Ethereum Price Forecast: ETH eyes move toward new yearly high
ETH bounced off the support level near $3,550 and has reclaimed the $3,730 level. The top altcoin is now attempting to move back above a key descending trendline extending from November 2021.
If ETH sustains a high volume move above this descending trendline, it could retest its yearly high resistance of $4,093.
ETH/USDT daily chart
ETH could overcome the $4,093 resistance level as most sellers at the level were washed out by the selling activity in the past four days. However, a failure to move above this resistance will establish it as a major selling level for traders and send ETH toward the support level near $3,550.
The Relative Strength Index (RSI) is above its neutral level and trending upward, indicating rising bullish momentum.
A daily candlestick close below $3,550 will invalidate the thesis.
Ethereum FAQs
Ethereum is a decentralized open-source blockchain with smart contracts functionality. Its native currency Ether (ETH), is the second-largest cryptocurrency and number one altcoin by market capitalization. The Ethereum network is tailored for building crypto solutions like decentralized finance (DeFi), GameFi, non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), etc.
Ethereum is a public decentralized blockchain technology, where developers can build and deploy applications that function without the need for a central authority. To make this easier, the network leverages the Solidity programming language and Ethereum virtual machine which helps developers create and launch applications with smart contract functionality.
Smart contracts are publicly verifiable codes that automates agreements between two or more parties. Basically, these codes self-execute encoded actions when predetermined conditions are met.
Staking is a process of earning yield on your idle crypto assets by locking them in a crypto protocol for a specified duration as a means of contributing to its security. Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism on September 15, 2022, in an event christened “The Merge.” The Merge was a key part of Ethereum's roadmap to achieve high-level scalability, decentralization and security while remaining sustainable. Unlike PoW, which requires the use of expensive hardware, PoS reduces the barrier of entry for validators by leveraging the use of crypto tokens as the core foundation of its consensus process.
Gas is the unit for measuring transaction fees that users pay for conducting transactions on Ethereum. During periods of network congestion, gas can be extremely high, causing validators to prioritize transactions based on their fees.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
