Ethereum (ETH) surged 7% to $3,930, amid Bitcoin and broader market recovery following a favourable US SPI data release on Wednesday.
Amid the broader crypto market recovery, Ethereum ETH $2 941 24h volatility: 0.8% Market cap: $354.99 B Vol. 24h: $17.92 B price has shot up 7% moving all the way to the crucial resistance of $3,930 levels. ETH has remained range-bound for a while oscillating between $3,500-$4,000 as investors eye for a breakout rally all the way to a new all-time high.
There are multiple reasons behind today’s ETH price pullback. Firstly, the US CPI inflation numbers were in line with expectations thereby leading to a strong bullish sentiment in the overall crypto market. While Bitcoin surged 3.5% rallying more than $100K levels, altcoins led by Ethereum are seeing a greater surge.
Furthermore, as Ethereum took support at $3,550 levels earlier this week, institutional investors and whales charged in to buy ETH at lower prices, per the on-chain analytics. Over the past week, investors have withdrawn over 130,000 ETH from exchanges during the recent price drop.
During the same period, whale holdings increased by more than 340,000 ETH, suggesting that bullish investors viewed the price dip as an opportunity to accumulate Ethereum at discounted levels.
Source: Santiment
On the other hand, inflows into spot Ethereum ETFs have remained strong. For the last nine consecutive trading sessions, the US Ether ETFs have witnessed net inflows taking the total inflows since inception close to $2 billion.
The BlackRock Ethereum ETF (ETHA) has been the top performer with $2.9 billion in inflows. On the other hand, Fidelity’s FETH is also catching up nicely with more than $1.35 billion in inflows. This shows that the institutional demand for Ethereum investment products is picking up pace once again.
Ethereum Price Eyes $5K amid Golden Cross Pattern
Ethereum (ETH) has formed a bullish “golden cross” pattern on its price chart, a technical signal that often indicates strong upward momentum. Market analysts are optimistic, forecasting a potential climb to $5,000 for ETH.
$ETH Bullish Golden Cross
$5k ETH and AltSeason are coming 🚀 pic.twitter.com/GFt9LvxKOW
— Elja (@Eljaboom) December 12, 2024
In the near term, Ethereum should first cross the resistance of $3,930 on a daily closing basis to confirm the uptrend. In the past, ETH has seen multiple pullbacks from here.
Later, Ethereum price needs to overcome the resistance of $4,093, wherein it has faced strong selling activity in the past. Failing to do so could push ETH back to the support levels of $3,550 once again. However, market analysts hint at seller exhaustion at these levels.
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