Ethereum’s Struggle at $4,000 and BlackRock’s Strategic Accumulation
Ethereum (ETH) has been unable to break past the persistent $4,000 resistance level, yet BlackRock’s iShares Ethereum Trust ETF has quietly reached a significant milestone by amassing over one million ETH. This development signifies robust institutional interest in Ethereum, despite its lackluster price performance in 2024.
Increasing Institutional Investment in Ethereum
Year-to-date, Ethereum has witnessed a substantial 43% increase in value, rising from around $2,280 at the beginning of the year to $3,283 as of now. Although this growth is noteworthy, Ethereum’s performance has been eclipsed by other cryptocurrencies, such as XRP, Solana (SOL), and SUI, which have recorded even larger gains during the same timeframe.
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However, Ethereum holds a pivotal advantage over many altcoins: it offers direct access to institutional investors via regulated ETFs, similar to Bitcoin’s market position. In a recent update on social media platform X, crypto entrepreneur Dan Gambardello emphasized that BlackRock’s Ethereum ETF has now accumulated over one million ETH.
Ethereum’s Position and Future Potential
Gambardello pointed out that Ethereum’s current consolidation below its all-time high, coupled with increasing institutional interest, could herald an exceptional altcoin season. This prospect is further supported by recent data indicating continuous net inflows into ETH ETFs.
According to analytics from SoSoValue, US spot Ethereum ETFs have experienced four consecutive weeks of net inflows, accumulating over $2 billion in investments. The total net assets held by all US spot Ethereum ETFs amount to $12.15 billion, nearly 3% of Ethereum’s entire market capitalization.
Crypto analysts maintain a positive outlook for Ethereum, the leading smart-contract platform, anticipating a potential new all-time high. For example, CryptosRus highlighted Ethereum’s historically bullish behavior in the months following US presidential elections.
Historical Trends and Technical Analysis
After the 2016 US election, Ethereum saw a substantial rally in the first quarter of 2017. A similar trend was witnessed in 2021, following the 2020 election, with Ethereum experiencing four weeks of consecutive price increases.
On the technical front, crypto analyst @CryptoPoseidonn shared an 8-hour Ethereum chart, suggesting a potential bottoming around the 200-day exponential moving average (EMA). The analyst remarked that the current pullback could present an opportunity to accumulate more Ethereum at a lower price.
Is the Market Correction Approaching Its Conclusion?
The total cryptocurrency market capitalization has decreased from $3.9 trillion on December 16 to $3.4 trillion at present, marking a $500 billion reduction within a week. Data from Coinglass indicates that more than $289 million in liquidations occurred in the last 24 hours alone.
Despite the downturn, experienced crypto analyst Pentoshi proposed on the 3-day chart that the recent crash might serve as a retest of the previous market cap all-time high seen in November 2022, potentially setting the stage for the next market surge.
Not all analysts share this optimistic short-term outlook. Renowned crypto entrepreneur Arthur Hayes recently cautioned about a possible market decline around the inauguration of Donald Trump in January. As of the latest data, Ethereum is trading at $3,283, reflecting a 1.2% increase over the past 24 hours.
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