can ETH price hit $5k?

Spot Ethereum exchange-traded funds broke a significant record as inflows continued to rise.

Ethereum (ETH) ETFs have broken a personal record with consecutive entries in the last 16 days. On Friday, December 14, net inflows were over $23.6 million, bringing the total amount since inception to over $2.26 billion.

All spot Ethereum ETFs have over $13.7 billion in assets, according to SoSoValue. Grayscale Ethereum ETF is still the largest, valued at over $5.6 billion.

This is followed by iShares Ethereum Trust ETF, Fidelity Ethereum Fund, Bitwise Ethereum ETF, VanEck Ethereum ETF and Franklin Ethereum ETF.

One reason for the inflows is the growing hope that the U.S. Securities and Exchange Commission will allow staking. Such a move would mean that ETF holders will benefit as the price of the coin increases and the staking reward increases. StakingRewards data shows the staking return is 3.26%.

These inflows occurred at a time when Ethereum was doing well. Its price is hovering around $4,000, just 25% below its all-time high of $4,870. It has jumped 153% from its 2023 low.

On-chain metrics are also encouraging. IntoTheBlock’s data shows that the number of active ETH addresses has risen to over 122.7 million, the highest in months.

More data shows Ethereum whales gaining market share. Whales hold approximately 43 percent of all Ethereum coins; This is up from 22 percent in November, a sign they are optimistic about the coin.

ETH whales | Source: IntoTheBlock Ethereum price analysis: Can ETH reach $5,000? ETH price chart | source: crypto.news

In a recent note, CryptoQuant predicted that the ETH price would head towards $5,000, citing demand and supply dynamics.

On the weekly chart, we see that ETH price is rising and finding a strong barrier at $4,092. It had failed to exceed this level twice before, in March and May.

Ether remained above the 50-week and 200-week moving averages and the 23.6% Fibonacci Retracement level. Therefore, ETH needs to break the resistance at $4,092 to invalidate the triple bottom chart pattern.

A move above this resistance will push it towards the all-time high at $4,877 and the key level at $5,000. It only needs to rise 25% to reach $5,000, which can be achieved if the crypto bull run continues.