Ethereum price today: $3,820
- Ethereum whales are hitting exchanges with heavy buying pressure as revealed in its on-chain coin flows.
- Ethereum ETFs stretched their inflow streak to seven consecutive days, the highest since its launch.
- Ethereum is on the verge of completing a move that could spark a rally toward its all-time high of $4,868.
Ethereum (ETH) saw a 7% increase on Wednesday as whales increased their buying activity from exchanges and across ETH exchange-traded funds (ETFs). If the trend continues and ETH completes a cup and handle pattern, it could go on to smash its all-time high resistance at $4,868.
Ethereum whales lead buying activity amid strong ETF inflows
Ethereum whales displayed mixed on-chain behavior in the past five days. While whales holding between 100K to 1 million ETH depleted their holdings by 490K ETH, whales holding between 10K to 100K ETH increased their stash by 460K ETH. The total number of Ethereum holders also increased to 133.21 million on December 4, indicating rising investor interest in the top altcoin.
 [19.40.17, 04 Dec, 2024]-638689359139130973.png)
ETH Holders ( 100K - 1M & 10K to 100K) | Santiment
This shows that coins are potentially flowing from institutions like crypto exchanges to retail whales, as also evident in the depleting exchange reserve. If the trend continues, whale buying activity could push ETH's price toward its all-time high resistance of $4,868.
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ETH Exchange Reserve | CryptoQuant
ETH's circulating supply has also followed a downtrend in the past few days with a 1K ETH reduction, per Ultrasound.money. This indicates the number of ETH burned is rising. When ETH supply growth falls during a period of heightened bullish momentum, it leads to an opposite price reaction.
A similar bullish sentiment is evident in ETH staking flows, which have seen four consecutive days of inflows. When investors lock their assets in staking protocols, it signifies potential long-term holding, reducing selling pressure.
ETH Staking Flows | IntoTheBlock
Meanwhile, US spot Ethereum ETFs posted net inflows of $132.6 million, marking seven consecutive days of positive flows for the first time since their launch. With the recently increased institutional buying activity, their net flows have reached over $733 million in inflows despite a $3.42 billion exodus from Grayscale's Ethereum Trust (ETHE), per Coinglass data.
Ethereum Price Forecast: ETH on the brink of a defining trend move
Ethereum rallied 7% in the past 24 hours, sparking over $62.87 million in futures liquidations. Liquidated long and short positions accounted for $15.49 million and $47.38 million, respectively.
Ethereum is testing the descending trendline resistance of a key symmetry triangle extending from November 8, 2021. If ETH sustains a high volume move above this trendline, it could rally to complete a short-term rounded bottom move to test its all-time high resistance at $4,868.
ETH/USDT weekly chart
A successful move above its all-time high will validate a cup and handle pattern, which could see ETH sustain a long-term rally.
The Relative Strength Index (RSI) and Awesome Oscillator (AO) are above neutral levels, indicating dominant bullish momentum.
A daily candlestick close below $3,400 will invalidate the thesis and send ETH to find support near the $2,817 level.
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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