Ethereum Price Forecast: ETH Approaches All-Time High Amid Record ETF Inflows and Investor Shift from Bitcoin
Ethereum (ETH) has surged above $4,000, marking its first breakthrough since March, amid unprecedented institutional ETF inflows and growing investor preference for Ethereum over Bitcoin.
Growing Preference for Ethereum Over Bitcoin
Investors have increasingly favored Ethereum since the U.S. elections, a trend that gained momentum after SEC Chair Gary Gensler announced his retirement, according to Bybit’s December 5 Volatility Review report. Ethereum’s dominance has been further highlighted by the ETH/BTC ratio, which rose from 0.31 on November 19 to over 0.4 on December 5.
This shift has contributed to a decline in Bitcoin dominance and speculation of an impending “altcoin season.” Bybit analysts noted that ETH’s options skew is more robust than Bitcoin’s, signaling heightened bullish sentiment.
Institutional Demand via ETFs
Institutional interest in Ethereum has skyrocketed, with Ethereum ETFs witnessing their highest-ever single-day net inflows of $428.5 million on December 5, according to Coinglass. Over the past nine days, cumulative ETF inflows surpassed $1 billion, a clear indication of mounting investor confidence.
Ethereum’s Price Outlook: Testing Resistance Levels
ETH surged over 5% in the past 24 hours, driving futures liquidations worth $75.14 million, with $44.6 million in long positions and $30.54 million in short positions.
The cryptocurrency is now testing a yearly high resistance level at $4,093, following a breakout above a cup-and-handle pattern’s descending trendline. If ETH surpasses this resistance, it may target its all-time high of $4,868. A move beyond this could push Ethereum towards $5,627.
Momentum indicators, such as the Relative Strength Index (RSI) and Awesome Oscillator (AO), signal continued bullish momentum. However, a weekly close below $2,817 would invalidate this optimistic forecast.
