TLDR
- Ethereum price remains stable near the demand zone with strong buyer engagement.
- ETF outflows reached $79 million this week, reducing liquidity in the market.
- Institutional investors, including BitMine and BlackRock, are accumulating Ethereum.
- A clean double-bottom pattern formed near $2,723, signaling potential for recovery.
- Ethereum’s price could rise towards $3,080 and eventually target $3,915 if buyers continue their momentum.
The Ethereum price enters a crucial phase as December begins, with key technical levels shaping its future movement. The cryptocurrency is stabilizing near the demand zone, which has attracted consistent buyer engagement. With ETF outflows reaching $79 million this week, large players have been accumulating Ethereum, setting the stage for a potential price surge. The upcoming Fusaka upgrade adds another layer of influence, making this an important period for Ethereum’s price trajectory.
Ethereum Price Holding Firm at Demand Zone
Ethereum price has found strong support near the demand zone, holding at $2,807. Buyers have shown consistent involvement in this region, stabilizing the market and preventing further declines. The formation of a clean double-bottom around $2,723 further supports this positive outlook, with buyers entering aggressively to defend the area.
The upper boundary of the descending channel was retested, confirming the breakout. This retest is a key moment for traders, signaling the potential for a continuation of the upward trend. Traders look for such price reactions as confirmation of strength and structure in the market.
If buyers maintain their momentum, Ethereum could see a rally towards $3,080. The next resistance lies at $3,629, with a larger price target of $3,915 if further obstacles are cleared. However, the market needs more price action to confirm the continuation of this trend.
ETF Outflows Create Bullish Imbalance
Ethereum ETFs have seen a substantial outflow of $79 million this week. Despite this, the market reaction has been constructive, as the exits have reduced liquidity rather than applying downward pressure. The decreased supply of Ethereum in exchanges tends to favor long-term buyers by supporting price stability.
Large institutional players have shown increasing confidence in Ethereum’s future direction. For instance, BitMine by Tom Lee purchased 96,798 ETH, signaling a strong belief in Ethereum’s upcoming growth. Similarly, BlackRock’s addition of 26.7 million ETH further supports a bullish outlook for Ethereum.
The combination of ETF outflows and institutional purchases creates a unique market dynamic. With reduced supply and increased demand, Ethereum price may continue its upward trajectory as large players accumulate.
Fusaka Upgrade Adds to Positive Sentiment
Ethereum’s upcoming Fusaka upgrade on December 3rd is expected to improve execution flow and reduce network load. Institutions are likely positioning for increased demand following the upgrade. The Fusaka upgrade is seen as a catalyst for Ethereum’s long-term growth, with many anticipating a boost in network performance and adoption.
The convergence of ETF outflows, institutional accumulation, and the Fusaka upgrade has set Ethereum on a bullish path. These factors, combined with technical indicators, suggest a positive short-term outlook for Ethereum’s price. As December progresses, Ethereum’s price may continue to strengthen, provided buyers maintain their presence at key support levels.
Ethereum price prediction remains optimistic, with a focus on the next key resistance levels. The market’s reaction to the upcoming upgrade and continued institutional activity will be crucial in determining Ethereum’s future price performance.
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