Key Points
- Ethereum’s price surpasses $3,900, targeting $4,631 amid increased ETF inflows.
- Justin Sun, the founder of the Tron blockchain, has sold 41,630 ETH since November.
Ethereum’s Price Rise
Ethereum’s market price has surpassed $3,900, inching towards its 52-week high of $4,093. The current price of Ethereum is around $3,918, which is about 4% less than the highest price of the year.
This surge marks the third consecutive week of positive performance for Ethereum, with a price increase of approximately 28%. This upward trend could potentially lead to a triple white soldier pattern in the weekly chart, which is a trend continuation pattern.
Ethereum’s market cap has reached $472 billion, with a 24-hour trading volume of $65.92 billion. As these figures turn green, analysts predict that the rally could reach a new 52-week high this week, despite whale sell-offs.
Whale Sell-Offs Amid Ethereum’s Rally
As the rally continues, several whales have begun to profit. Justin Sun, the founder of the Tron blockchain, recently deposited 20,000 ETH tokens on the HTX exchange. The deposit is worth $76.3 million as Ethereum’s market price has surged above $3,800.
Since the early November rally, Sun has sold off 41,630 ETH worth $146 million. Of this, 39,000 Ether worth $137 million were deposited on HTX, while the remaining tokens worth $8.76 million were deposited on Poloniex. The average selling price was $3,505.
Despite the sell-off, the Ethereum rally continues to gain momentum, with ETFs showing increased institutional demand.
Increased Institutional Demand for Ethereum ETFs
With Bitcoin crossing the $100,000 mark, the total daily net inflow reached $556.82 million. BlackRock’s Bitcoin ETF led the way with a net inflow of $571.71 million.
Institutional demand for Ethereum is gradually increasing, as evidenced by the daily total net inflow on December 4, which reached $167.62 million for US spot Ethereum ETFs.
BlackRock’s Ethereum ETF led the rally with a one-day net inflow of $124.35 million. With increasing demand, Ethereum’s price action indicates a potential new 52-week high.
Ethereum’s Potential Breakout
In the weekly chart, Ethereum’s price action shows a rounding bottom reversal gaining momentum. After a Q2 pullback, Ethereum’s price has regained bullish momentum in Q3, rebounding from the 200-week EMA at $2,355.
Ethereum’s price has surged by nearly 66% over the past 30 days, resulting in four bullish candles in the weekly chart, with a minor red candle. The weekly candle surpasses the crucial resistance zone below the $3,900 level, and Ethereum’s price is set to challenge the 100% Fibonacci level at the 52-week high of $4,093.
With a weekly jump of 5.78%, the massive surge in trend momentum increases the chances of a new all-time high. The weekly ADX line shows a minor uptick, while the VI line in the DMI indicator maintains a positive alignment.
The technical indicator shows a bullish trend gaining momentum. The 100-week and 200-week simple moving average lines reveal a positive crossover, indicating a change in Ethereum’s long-term price action and increasing the chances of a bull run.
The Fibonacci levels retraced between the 52-week high and low project the next potential price targets at $4,631 and $5,316. Therefore, Ethereum’s weekly price action shows an upside potential of 35%.
