- BlackRock’s Ethereum ETF now holds over 1 million ETH, showcasing strong institutional demand for Ethereum.
- US Ethereum ETFs have received over $2 billion in net inflows in the last four weeks.
- Ethereum’s price may find support around the 200-day exponential moving average on technical charts.
Ethereum (ETH) has struggled to surpass the $4,000 resistance level, despite increasing interest from institutional investors. Notably, BlackRock’s iShares Ethereum Trust ETF has accumulated more than one million ETH, reflecting significant institutional demand for Ethereum, even as its price performance remains relatively flat in 2024.
Growing Institutional Interest in Ethereum
Since the start of the year, Ethereum has risen by 43%, increasing from around $2,280 on January 1 to $3,283 at the time of writing. While this growth is meaningful, other cryptocurrencies like XRP, Solana (SOL), and SUI have posted even larger gains in the same period.
🚨 Blackrock’s Ethereum ETF now holds over 1,000,000 $ETH
This data paired with the fact that $ETH is still consolidating below all time high is an altcoin season indicator like we’ve never seen before pic.twitter.com/9LPpTlqtQJ
— Dan Gambardello (@cryptorecruitr) December 23, 2024
However, Ethereum has an advantage over many altcoins—it provides institutional investors with direct access through regulated ETFs, similar to Bitcoin.
Dan Gambardello, a well-known crypto entrepreneur, recently pointed out that BlackRock’s Ethereum ETF now holds over one million ETH. This milestone highlights the growing interest in Ethereum, despite the price being below its all-time high.
Gambardello also suggested that this situation, combined with increasing institutional interest, could lead to an altcoin season that differs from previous ones.
Ethereum ETFs See Capital Inflows
According to data from SoSoValue, US spot ETH ETFs have seen four consecutive weeks of net inflows, attracting more than $2 billion. Currently, the total assets in US spot ETH ETFs stand at $12.15 billion, which represents almost 3% of Ethereum’s market cap.
This shows strong confidence in Ethereum from large-scale investors.
Ethereum Poised for New ATH?
Despite a slower 2024 compared to other cryptocurrencies, Ethereum’s potential remains high. As the leading platform for smart contracts, many believe Ethereum is well-positioned for a new all-time high.
Analyst by ETHNews, highlighted that Ethereum has traditionally experienced strong price movements in the months following US presidential elections. After the 2016 elections, Ethereum saw a notable increase in price in 2017, and the same occurred after the 2020 elections, with Ethereum experiencing four consecutive weeks of gains.
Technical Indicators Suggest Potential Price Support
From a technical perspective, @CryptoPoseidonn, an analyst, shared an 8-hour ETH chart suggesting that Ethereum may find support around the 200-day exponential moving average (EMA), marked in green. This could signal a price rebound, indicating potential buying opportunities for traders.
Market Correction May Be Nearing Its End
The broader cryptocurrency market has seen a significant decline recently. The total crypto market cap dropped from $3.9 trillion on December 16 to $3.4 trillion, a loss of $500 billion in just one week. Data from Coinglass shows that $289 million in liquidations occurred within the last 24 hours.
However, analysts suggest that this correction could present buying opportunities. Some believe that the market may soon see a higher low, which would mark the end of the correction and set the stage for a price rebound.
