With Fidelity's FETH taking the lead on Tuesday, the inflow of capital into the spot Ethereum ETF has surged, with the ETH price showing strong momentum at $3,700.
The native cryptocurrency of Ethereum, ETH, has not yet participated in the Altcoin market's rebound, while peers such as XRP, Cardano (ADA), and BNB have witnessed strong growth. The ETH price remains firm around $3,700, and investors predict that with the inflow of Ethereum ETFs increasing again, the ETH price will immediately rebound to $4,000.
Will the ETH price soar to $4,000 soon?
Although Ethereum has not yet seen a rebound in this Altcoin season compared to its peers such as XRP, ADA, and BNB, the bulls have defended a strong ETH support level.
Cryptocurrency analyst IncomeSharks pointed out that the daily support level for Ethereum remains unchanged, which boosts confidence in holding previous positions entered. "I won't chase ETH at this level, but for now, the daily support level remains unchanged," the analyst noted.
The analyst emphasized the commitment to on-chain utility games and set the downside threshold at $3,200, indicating that a breach of this level would trigger an Ethereum sell-off. On the positive side, IncomeSharks maintains a near-term target of $4,000 or higher for Ethereum.
On the multi-year chart, the ETH price has also formed a massive cup-and-handle pattern since November 2021. However, Ethereum first needs to confirm a breakout above $3,800, which will lay the foundation for explosive growth in the future. Based on the historical reliability of this pattern in predicting significant upswings, the analyst estimates a target price of $7,346.
As of the time of writing, the ETH price has risen 2.15% to $3,688.51, with a market capitalization of $440 billion. In November, Ethereum's on-chain transaction volume soared to $183.7 billion, the highest monthly total since the beginning of 2021, up 9% from the annual peak in March.
This growth highlights the influx of capital into on-chain activity, partly due to the resurgence of Non-Fungible Token (NFT) transactions based on Ethereum. The Ethereum-based NFT market has set its highest trading volume since June.
Inflow into Ethereum Spot ETFs Surges Again
The inflow into Ethereum spot ETFs remains strong, with another surge on Tuesday, December 3rd. Following a $240 million inflow on Monday, the net inflow on Tuesday surged to $132 million, with Fidelity's FETH and BlackRock's ETHA leading the charge.
FETH saw a net inflow of $73.7 million, while ETHA's inflow exceeded $65.3 million. A positive factor is that, according to data from Farside Investors, the outflow from Grayscale's ETHE has significantly decreased from over $44.3 million the previous day to $6.4 million.
Since its inception, the inflow into BlackRock's Ethereum ETF has exceeded $2.2 billion, while Fidelity's FETH is also nearing the $1 billion milestone. Last Friday, the daily inflow into Ethereum ETFs surpassed the daily inflow into Bitcoin ETFs, becoming a catalyst for the recent rise in the ETH price.
