Key Points
- Ethereum (ETH) is poised to retest its all-time high (ATH) as it experiences a record weekly cash inflow of over $836 million from US Spot Ether ETFs.
- The altcoin’s price has surged by over 30% in the past three weeks, indicating a bullish market.
Ethereum’s Price Performance
Ethereum’s price has been on an upward trend, with a significant rally in the past three weeks.
The altcoin has seen a 30% increase, reaching a milestone of about $4K.
This rally has resulted in the highest weekly close against the USD since December 2021, signaling a bullish market.
From a technical standpoint, Ethereum is now set to rally towards its all-time high of near $5K.
Potential Market Corrections
However, a midterm correction could see the altcoin’s price retest its recent bullish breakout.
This could potentially send Ethereum’s price towards a support level of around $3,724 before continuing with the upward trend.
There’s also the possibility of short-term correction due to heightened crypto liquidations and increased futures open interest.
This could serve to cool down the industry from the recent surge in FOMO traders.
Ethereum Whales Accumulating More Assets
On-chain data analysis by Coinglass shows a decrease in the overall supply of Ether on centralized exchanges.
In the past week, the supply has declined by more than 363K, hovering around 15 million.
The Ethereum network currently has over 100k validators, with over 34.3 million Ether units staked.
Furthermore, more than 4.7 million Ether units have been burned to date since the implementation of the EIP-1559.
US spot Ether ETFs have purchased ETH worth over $1.3 billion in the past two weeks.
In the first week of December, BlackRock’s ETHA led other spot ETH ETF issuers in accumulating more than $836 million.
Factors Influencing the Accumulation of Ether
The rising adoption of ETH by institutional investors is largely due to the ongoing altseason.
With Ethereum leading in web3 development, more investors are betting on more upside trends.
The Ethereum network has the highest total value locked (TVL) of about $77 billion and a stablecoins market cap of over $106 billion.
Ethereum’s core developers, led by co-founder Vitalik Buterin, are continually enhancing the network to ensure its long-term competitiveness.
The next major Ethereum upgrade, Pectra, will allow network users to pay gas fees with different tokens.
This is expected to enhance the mainstream adoption of the smart contracts.
