Ethereum Price Forecast: ETH faces $4,000 hurdle amid impressive ETF inflows

Source Fxstreet

Ethereum price today: $3,900

  • Ethereum ETF's impressive growth is ‘just a tip of the iceberg,’ says a BlackRock executive.
  • Ethereum ETFs could outpace their Bitcoin counterparts if the SEC allows issuers to stake their assets.
  • ETH needs to maintain its move above a key symmetry triangle to overcome the resistance near the $4,000 psychological level.

Ethereum (ETH) experienced a 1% increase on Friday, following predictions of heightened inflows into ETH exchange-traded funds (ETFs). With a change in leadership at the Securities & Exchange Commission (SEC), asset managers anticipate that the regulator will permit staking within these products. This development could drive ETH's price to new heights as it aims to surpass the significant $4,000 psychological barrier.

Ethereum ETFs could continue their impressive run in 2025

The story keeps improving for Ethereum ETFs as they continue their impressive flows, recording $273.7 million in net inflows on Thursday, per Coinglass data. As a result, the products have stretched their inflow streak to 14 consecutive days.

Notably, BlackRock's iShares Ethereum (ETHA) and Fidelity's Ethereum Fund (FETH) have been responsible for most of the money flowing into ETH ETFs, with cumulative flows of $3.19 billion and $1.37 billion, respectively.

The sustained flows into both products have particularly been responsible for helping the entire ETH ETF category reach total net inflows of $2.24 billion while weathering $3.52 billion in outflows from Grayscale's ETHE.

In a statement at Bloomberg ETF In Depth, Jay Jacobs, US Head of Thematic and Active ETFs at BlackRock, noted that the current inflows in both BTC and ETH ETFs are "just a tip of the iceberg," despite their impressive record. He added that BlackRock will focus on expanding the reach of both products rather than launching new ETFs for other altcoins.

Meanwhile, asset manager VanEck predicted that Ethereum ETFs will include staking in 2025. Prior to launch, issuers amended their filings to remove the capacity for staking after allegedly receiving signals that the SEC wasn't comfortable with the feature.

However, with Paul Atkins nominated as the upcoming SEC Chair, the agency may change its stance on staking within ETH ETFs. According to European cryptocurrency provider Bitcoin Suisse, such changes could spark a new wave of inflows into the products and catapult them above Bitcoin ETFs.

Ethereum Price Forecast: ETH needs to maintain move above symmetry triangle to overcome $4,000 resistance

Ethereum saw $24.75 million in liquidations in the past 24 hours, with liquidated long and short positions accounting for $13.98 million and $10.77 million, respectively, per Coinglass data.

The leading altcoin is trading above the upper boundary of a symmetry triangle pattern after posting a long-tailed candle that bounced off the support level near $3,550. The candle shows bears couldn't keep prices down after ETH saw a sharp decline earlier in the week.

ETH/USDT weekly chart

ETH/USDT weekly chart

If the upper boundary of the symmetry triangle proves to be a good support level, it could help ETH overcome the resistance near $4,000 to $4,100 — a critical level that has proven to be a major selling zone among traders.

A breakout above this level could send ETH to test its all-time high resistance at $4,868.

The Relative Strength Index (RSI) is above its neutral level, indicating dominant bullish sentiment. 

Meanwhile, the Stochastic Oscillator is in its oversold region, indicating ETH could see a correction.

A weekly candlestick close below $3,550 will invalidate the thesis.

Ethereum FAQs

Ethereum is a decentralized open-source blockchain with smart contracts functionality. Its native currency Ether (ETH), is the second-largest cryptocurrency and number one altcoin by market capitalization. The Ethereum network is tailored for building crypto solutions like decentralized finance (DeFi), GameFi, non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), etc.

Ethereum is a public decentralized blockchain technology, where developers can build and deploy applications that function without the need for a central authority. To make this easier, the network leverages the Solidity programming language and Ethereum virtual machine which helps developers create and launch applications with smart contract functionality.

Smart contracts are publicly verifiable codes that automates agreements between two or more parties. Basically, these codes self-execute encoded actions when predetermined conditions are met.

Staking is a process of earning yield on your idle crypto assets by locking them in a crypto protocol for a specified duration as a means of contributing to its security. Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism on September 15, 2022, in an event christened “The Merge.” The Merge was a key part of Ethereum's roadmap to achieve high-level scalability, decentralization and security while remaining sustainable. Unlike PoW, which requires the use of expensive hardware, PoS reduces the barrier of entry for validators by leveraging the use of crypto tokens as the core foundation of its consensus process.

Gas is the unit for measuring transaction fees that users pay for conducting transactions on Ethereum. During periods of network congestion, gas can be extremely high, causing validators to prioritize transactions based on their fees.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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