Record $844 million flows into Ethereum ETFs – Can this facilitate ETH to meet December objectives?
ETH exchange-traded funds in the U.S. witnessed their highest weekly inflows ever last week. As per data from SpotOnChain, these funds recorded five consecutive days of inflows amounting to $844 million.
During the same timeframe, the maximum daily inflow reached $428.5 million, prominently contributed by BlackRock and Fidelity. The substantial influx of funds and rising demand pushed the value of ETH to reach $4K, a milestone not achieved since March 2024.
This outstanding performance marked a significant turnaround from the lackluster debut of these products back in July. To what extent can these robust inflows propel the value of ETH?
Traders looking at price range between $5K-$6K
It was no surprise to options traders that ETH reached $4K last week, as it had been anticipated. Almost $660 million in notional value was placed on ETH hitting this level. So, what are traders focusing on next?
Deribit data reveals that other price targets with high open interest rates included $4.5K, $5K, and $6K. Noteworthy bets were also positioned at the $8K level.
About $374 million was dedicated to hitting the $5K mark, with $353 million and $348.5 million placed on $6K and $4.5K, respectively. Essentially, traders were confident in the possibility of ETH reaching the $5K and $6K price ranges. While targets of $4.5K and $5K could be feasible for December, hitting $6K might be more likely in January 2025.
The bullish sentiment in the market, indicated by a surge in ETH’s active addresses, further validates the positive outlook in the options market. Since the lows of October, the monthly active addresses for ETH have surged from below 300K to over 380K at present.
If the bullish market sentiment persists, the growing market interest could potentially drive up the prices of ETH.
Despite this, ETH was consolidating below $4K at the time of writing. On the pricing charts, the next significant Fibonacci levels aligned with the targets set by options traders.
$4.5K and $5K were considered as immediate upward levels, while $3.6K served as a crucial support level.