Ethereum price set to reach $4K as institutional demand and technical patterns signal a strong bullish trend in 2024. The price of Ethereum surged 4.26% to complete a morning star pattern and form a bullish engulfing candle. As it recovers from the 100-day EMA, the ETH token trades around $3,398 and attacks the 50-day EMA line. The hourly chart shows an approaching breakout ready to indicate an entry point for price action traders as it gets set for a reversal run.
ETH Price Surge Ahead
The Ethereum price action displays a resistance trendline created over the most recent downturn on the 1-hour price chart. With yesterday night’s recovery run, this completes a triangular pattern, teases, and prepares for a triangle breakout rally. Additionally, as it forms a V-shaped rebound and a rounding bottom reversal, the price movement of ETH also makes an Adam and Eve pattern.
The Adam and Eve pattern’s neckline is located at $3,477, which is the 38.20% Fibonacci level. Therefore, the triangular pattern’s bullish breakout will end the short-term pullback phase and raise the likelihood of a bullish pattern breakout. Before the end of 2024, this breakout rally may hit the psychological $4k barrier, according to the Fibonacci levels.
Ethereum ETF Surge
Institutional demand for Ethereum has rebounded, even as US spot Bitcoin ETFs saw a $226 million negative inflow. As of December 23, the total net assets have surpassed $12 billion, with a daily net inflow of $130.76 million. With a cumulative total net flow of $2.46 billion, it holds a dominant position of 2.94% of the Ethereum market capitalization. BlackRock bought $89.51 million worth of Ethereum, leading the bullish pack, while Fidelity bought $46.37 million. Bitwise managed to seize $963.72k in Ethereum, while Grayscale was the sole ETF to withdraw $6.09 million.
Ethereum Demand Surge
As institutional demand for Ethereum rises with technical advances, Ethereum’s network expansion bodes well. In a recent tweet, Cryptoquant showed several positive Ethereum signs. According to Cryptoquant technical on-chain analyst Egyhashx, “these factors point to a possessive bullish outlook for Ethereum as market participants appear ready to maintain and possibly increase their exposure to the asset.” Ethereum’s projected leverage ratio has increased from 0.35 in August to approximately 0.5 in December. This shows how leverage trading has expanded on all Ethereum futures markets.
In addition, there are now 3.6 million Ethereum funds across all symbols, up from less than 3 million at the end of October. The Korean premium index soared in December, and overall funding rates remain favourable. At its peak in late December, the premium rose from -2 to 5.1. Since September, this has been the highest Korean premium index for Ethereum. Therefore, it is anticipated that the price of the largest cryptocurrencies will increase due to the growing interest in Korean markets and the increasing demand for Ethereum in institutions.
Also Read: Ethereum Path Towards $5k with New Developments
In Summary
Technical indications and institutional demand support Ethereum’s price turnaround. A morning star pattern and bullish engulfing candle predict a breakout, with the price approaching $4,000 by 2024. Significant institutional inflows from BlackRock and Fidelity bolster Ethereum’s long-term growth optimism. Ethereum is gaining popularity among institutional investors in the Korean market, as shown by rising leverage ratios and favourable funding rates. Ethereum’s upward trend will likely continue as it grows and gains adoption, making it appealing to traders and investors.
