While Bitcoin made headlines with its record-breaking highs, Ethereum, often referred to as the ‘digital silver,’ also demonstrated significant movement.
As the second-largest cryptocurrency by market capitalization, Ethereum successfully crossed the $3,000 threshold, breaking a long-standing resistance level.
This breakthrough coincided with unprecedented positive flows into Ethereum’s spot exchange-traded fund (ETF), signaling a new phase of bullish momentum.
Will Ethereum be able to uphold this upward trend as it ventures into uncharted territory?
Record ETF Inflows Propel Ethereum’s Surge
The data analysis of Ethereum’s ETF flow over the past week revealed a net inflow of $154.66 million, marking a new record for weekly positive flows.
According to data from SosoValue, this marks Ethereum’s second consecutive week of net inflows, representing a significant achievement for the ETF.
During its launch week, Ethereum’s ETF experienced the largest weekly net flow, with a negative value of $341.35 million. However, the trend has now shifted towards positive territory, with consecutive inflows supporting ETH’s price surge.
This surge in institutional backing has propelled ETH past the $3,000 barrier, boosting its upward trajectory.
Ethereum Seeks to Consolidate Its Position Above $3k
At the time of reporting, Ethereum surged to $3,027.90, marking a robust bullish breakout and surpassing both its 50-day and 200-day Moving Averages (MA).
This significant move demonstrates a strong rally as ETH conquered the psychological barrier of $3,000, indicating investor confidence in the asset.
The 50-day MA stood at $2,565.64, while the 200-day MA was at $2,954.58, serving as crucial support levels during the ongoing bullish run. The heightened volume also suggests a strong buying interest.
If this bullish momentum persists, ETH could aim for higher levels, with potential resistance zones around $3,200 and beyond.
A potential pullback to test support at the 200-day MA might offer a suitable entry point for traders closely monitoring this trend.
Ethereum’s breach of the $3,000 resistance level marks a significant milestone, supported by record ETF inflows and robust technical signals.
If this momentum continues, ETH might sustain its rally, establishing $3,000 as a new support level as it heads towards the year’s conclusion.
MVRV Ratio Indicates Increasing Profitability Among Holders
The 30-day Market Value to Realized Value (MVRV) ratio for Ethereum suggests that many holders are currently in profit as ETH trades above $3,000.
An ascending MVRV ratio hints at potential profit-taking in the near future, which could introduce selling pressure into the market.
As of now, the MVRV stands at approximately 15.6%, its highest level since May.
Further analysis from IntoTheBlock indicates that around 2.86 million addresses acquired ETH around its current price level, signifying its significance as breaking beyond this point could trigger an all-time high (ATH) scenario.
If the MVRV ratio continues its ascent, more holders are likely to find themselves in profitable positions, possibly leading to natural market corrections.
With the increasing institutional interest, Ethereum’s new support level might be around the $3,000 mark, potentially mitigating the impact of minor sell-offs.