Ethereum, the second-largest cryptocurrency by market capitalization, continues to impress investors with its remarkable performance this bull season. A series of factors, including significant inflows into US-listed spot Ether ETFs, heightened activity on the Ethereum blockchain, and increased institutional interest, are fueling optimism that Ethereum could soon surpass its price record set three years ago.
QCP Capital Highlights Ether’s Outperformance
QCP Capital recently reported that Ethereum was the standout performer, surging by 11.65% to reach a high of $3,688. This aligns with their prediction of a capital shift from Bitcoin to Ethereum, as shared earlier in the week. The continued robust net inflows into ETH spot ETFs, which totaled $90.1 million in a single day, underscore the market’s growing optimism despite recent market retracements. Given that Ethereum has been trailing behind Bitcoin and Solana in the current rally, its newfound strength suggests a potential retest of its all-time high of $4,868—a potential increase of 35.4%.
ETH ETFs Surpass Bitcoin ETF Flows
Ethereum ETFs have recently outpaced Bitcoin ETFs, attracting over $220 million between November 22 and November 27. This marks the second-longest streak of inflows since they were launched in July, in contrast to spot Bitcoin ETFs, which recorded $35.2 million in net inflows, primarily due to significant outflows on November 25. Data from intotheblock reveals that approximately 88% of Ether holders are currently in profit, with the asset’s price having risen 6% over the past week—its highest level since June. However, traders remain cautious about the asset breaching the $4,000 mark, as short positions against this level have accumulated. CoinGlass data indicates that up to $1.43 billion in short positions could be liquidated if Ether achieves this milestone.
Market Participants Remain Optimistic
Despite the uncertain trading environment, many market participants remain optimistic about Ethereum’s potential. Crypto trader Ash Crypto recently posted on social media that Ethereum is “very close” to reaching $4,000. Another trader, Borovik, expressed even greater confidence, stating he would get an Ether logo tattoo if the cryptocurrency reaches $15,000 in the current cycle. A pseudonymous analyst also suggested that Ethereum is poised for gains against both Bitcoin (ETH/BTC) and the US dollar, predicting that ETH/BTC could rise to 0.4597 BTC and that Ethereum could surge past $4,000. This anticipated rally is expected to be fueled by significant investments in ETH ETFs, with the potential for several $250-$500 million inflow days in the near future, as highlighted by a recent $91 million day.
Ether Set For A Rally
In the past week, Ethereum’s value has increased by 7.7% to $3,590, while Bitcoin has decreased by 2% to $96,780, bringing the ETH to BTC price ratio back up to 0.037 BTC. Markus Thielen, founder of 10x Research, attributes part of Ethereum’s price rally to a partial court victory for crypto privacy mixer Tornado Cash, further solidifying Ethereum’s position as the leading decentralized finance (DeFi) platform. As we approach 2025, growing investor interest and expectations of favorable crypto regulations could position Ether for a rally above $4,000. The market currently hovers between bullish optimism and cautious trading strategies. What lies ahead for Ethereum? Will it break through the resistance level, or is a price correction imminent? Stay tuned for updates.
