Highlights:
- Ethereum price is regaining momentum after a 48-hour correction
- A rebound would put Ethereum on course to $4000
- Increased ETF inflows could send Ethereum to $4k soon
Ethereum continues the upside momentum it has built up so far as the broader market turns bullish. When going to press, Ethereum was up by 0.68% to trade at $3188.02. A lot is happening in the market that supports a continuation of the momentum that the Ethereum price has built up so far.
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Institutions Looking to Spend More on Cryptocurrencies
Institutions increasingly view cryptocurrencies as a viable investment option. A survey conducted by Sygnum, which is digital asset banking, reveals that 57% of institutional investors intend to increase their cryptocurrency holdings.
They cite the ongoing bullish trend which shows increasing faith in the long-term potential of digital assets. The survey included views from over 400 institutional and professional investors from 27 countries. It demonstrates a notable change in perception as market regulation and environment improve.
📣 News: High-Risk Appetite and Long-Term Confidence Drives 57% of Institutional Investors to Raise Crypto Allocations: Sygnum Future Finance Survey
▪️ 57% of institutional and professional investors plan to increase long-term crypto allocations, demonstrating their high-risk… pic.twitter.com/fFHsz2cpyq
— Sygnum Bank (@sygnumofficial) November 14, 2024
According to the results of the survey, approximately 65% of the investors are optimistic about the likelihood of appreciation in the value of digital assets. 63% of them are considering increasing their allocations in the period of three to six months. Recently, Bitcoin registered another record high of exceeding a price of 93000 US Dollars.
This has further increased their interest as they try to get a stronger stance in the market. Of the respondents surveyed, 69% of them reported that favorable regulatory conditions were one of the factors taken into consideration. That’s because it reduced earlier impediments to making crypto investments.
There is also a change in the investment strategies. Data shows an increased emphasis on single-token, actively managed portfolios, layer-1 blockchains, Web3, or DeFi. More than half of the investors surveyed say that they invest over 10% of their investment portfolios in the digital asset market, indicating that the market has become more attractive. All this makes a strong case for Ethereum, which is one of the top cryptocurrencies in the market today.
Ethereum Price Surge Likely as Deflationary Tokenomics Boosts Bullish Outlook
Ethereum shows signs of a potential bull run as its supply becomes deflationary. Analysis retrieved from Ultrasound.Money indicates that there has been a considerable change in ETH burn rates. This has triggered a deflationary outlook within ETH that has the potential to draw in even more investors.
If you're unsure whether it's a good time to be holding $ETH right now, see if the 3 graphs below suggest anything to you…
Sources: Cryptoquant, Coinglass, https://t.co/x2XSVx2WjM
and if you want to leverage ETH trustlessly on-chain using ETH collateral, check out #gTrade pic.twitter.com/OQcQRlVmHd
— Degentralisation 🦇🔊 (@Degentralise) November 13, 2024
Ethereum ETF Inflows Continue to Rise
There has been a spike in interest in Ethereum from Wall Street. Investment in ETH-focused exchange-traded funds (ETFs) registered its fifth consecutive positive inflow fundamentally for the first time since the SEC approved Ethereum ETFs. On November 11, inflows stood at an impressive $295.50 million, with over $131.40 million being achieved on November 12.
This trend means that more investors are willing to enter into the Ethereum ETF market. Such potential makes it possible for a closing of the gap with Bitcoin ETF which has long been the center of attention in Wall Street. Eric Balchunas, a Bloomberg analyst, commended the trend despite considering Bitcoin ETFs dominant.
Taking the backdrop of such changes, the price of ETH also witnessed a change to the upside breaking the three-month consolidation. These changes coupled with the Ethereum ROI have strengthened Ethereum’s bullish momentum.
Technical Analysis – Ethereum Price Trending Towards Key Resistance
Despite a minor correction in the last 3-days, sellers appear weak. This as the broader market rises means Ethereum bulls could soon regain control. In a scenario where bulls are in control, the key level to watch would be the $3539.4 resistance. A rally through this resistance level could open the way for the Ethereum price to test $4000 in the short term.
However, if short sellers take control in the short term, the key level to watch would be the $2929.7 support. Of these scenarios, the odds are higher that Ethereum is headed for $4000. With institutional demand for Ethereum on the rise, coupled with its deflationary tokenomics, the future is bullish.
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