Ethereum price today: $2,680
- Ethereum ETFs' weekly inflow surged to a new all-time high of $836.8 million, boosted by BlackRock's ETHA.
- Ethereum investors realized over $2.5 billion in profits, sparking a two-year high in ETH futures liquidations.
- Ethereum could bounce off the support level near $3,550 to retest its yearly high resistance of $4,093.
Ethereum (ETH) declined 10% on Monday after investors increased their profit-taking with over $2.5 billion in realized profits. This sparked a two-year high in futures liquidations for the top altcoin. However, ETH exchange-traded funds (ETFs) provide a bullish picture amid the recent selling pressure hitting the market.
Ethereum ETFs indicate bullish sentiment amid high profit-taking among investors
Ethereum ETFs posted a record net inflow of $836.8 million last week after recording ten consecutive days of positive flows, per Coinglass data. BlackRock's ETHA was responsible for most of the flows, registering nearly $573 million in inflows last week. As a result, the cumulative flows of ETH ETFs crossed $1.4 billion.
The sustained inflow streak underscores increased institutional interest in Ethereum amid signs of increased basis trading among US investors.
The bullish sentiment was also evident across Ethereum exchanges, where investors withdrew over 256K ETH last week. A decrease in an asset's exchange reserve indicates potential for long-term holding and causes bullish pressure on prices.
However, ETH staking flows show that investors started booking profits towards the weekend, as the staking net flows in the past four days indicate high unstaking activity. When staking outflows outpace inflows, it signals a bias toward selling and the potential for price to decline.
ETH Staking Flows | IntotheBlock
This is evident in Santiment's Network Realized Profit/Loss metric, which reveals that investors have booked profits of over $2.5 billion in the past seven days. This must have come from high sell orders from traders who set their profit targets close to ETH's yearly high of $4,093.
 [23.37.18, 09 Dec, 2024]-638693806501609628.png)
ETH Network Realized Profit/Loss | Santiment
Notably, some long-term holders began distributing their tokens on Monday, as evidenced by a spike in the Age Consumed metric. Hence, they may be partly responsible for the price decline.
 [23.38.02, 09 Dec, 2024]-638693807215138350.png)
ETH Age Consumed | Santiment
Ethereum Price Forecast: ETH could bounce off support level near $3,550
Ethereum trades near $2,680, sparking over $237 million in futures liquidations in the past 24 hours — its highest single-day liquidations since October 29, 2022. The total amount of long liquidations is over $216 million, while short liquidations accounted for only $21.6 million.
After seeing a rejection near its yearly high resistance at $4,093, ETH declined nearly 10% and has moved below the upper boundary of a symmetry triangle channel.
ETH/USDT weekly chart
If the decline continues, ETH could bounce off the support level near $3,550 to retest its yearly high resistance. A successful move above this resistance could propel ETH to test its all-time high resistance at $4,868.
A failure to bounce off $3,550 could send ETH toward the $2,817 support level.
The Relative Strength Index (RSI) is above its neutral level but following a downtrend, signaling weakening 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.
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