U.S. Spot Ether ETFs Records 3rd Highest Inflow Since Launch as ETH Price Nears $4,000

U.S. spot Ether exchange-traded funds are on an incredible run as inflows mark ten straight days of gains. The streak, the 3rd longest since the funds debuted on U.S. exchanges in July, reflects growing institutional appetite. According to Farside Investors, daily inflows jumped to $305.74 million, taking the running cumulative total to an eye-popping $1.87 billion.

Despite Ethereum's 7% slip in price over the last three days, the ETF market has held strong. Net inflows last week reached a new record for gains on a cumulative weekly basis even as prices faced headwinds. So far, December has witnessed $1.33 billion added to the total net assets, standing at an impressive $12.46 billion.

Especially the inflows on December 5 and 6 were really high. On the former, an all-time high amount of $428.44 million poured in, while the latter added another $83.76 million. Such numbers point to strong confidence in the second-largest cryptocurrency by market capitalization.

Ether Nears $4,000 as NFT Market Sees Revival

Ether’s price trajectory has seen its fair share of drama. Despite some turbulence, the token is nearing the $4,000 mark after climbing 5% in the past 24 hours, according to CoinMarketCap. This rally coincides with Ethereum’s highest monthly on-chain volume since December 2021, recorded last month. That figure was nearly double January’s volume, the lowest month this year.

The revival of Ethereum’s value has also sparked new life in the NFT market. Some top-tier NFT collections saw their prices rise by double-digit percentages, a sign of returning investor confidence in the ecosystem. This upward momentum reflects both optimism in blockchain-based assets and Ethereum’s increasing utility.

Parallel to this, the ETF market has been equally active. Spot funds have posted net positive inflows for seven straight trading days, adding $3 billion since November 27. As a result, their net assets now eclipse the estimated Bitcoin holdings of its enigmatic creator, Satoshi Nakamoto.

Price Analysis Points to Key Resistance and Support Zones

At the time of writing, Ethereum is trading at $3,828, reflecting a 5% gain over the past day. Technical indicators highlight pivotal levels for traders. The Fibonacci retracement places the next critical support at $3,425 if the current $3,718 level is not sustained. Breaking above $3,718 could open the door to the next resistance point at $4,091.

The Directional Movement Index (DMI) paints a cautious picture. The +DI has slipped to 22.1, while the -DI has climbed to 20.6, hinting at growing bearish pressure. Meanwhile, the Average Directional Index (ADX) holds firm at 37.4, suggesting a steady trend. Should bearish momentum increase, Ethereum could face a retest of supports at $3,220 or even $3,014.

Despite these challenges, Ethereum’s broader trend remains bullish. The ascending wedge pattern provides a vital support framework, with its lower boundary acting as a buffer against deeper declines. A breakdown below this line, however, might signal a trend reversal, raising the stakes for traders closely watching the market.