With Ethereum ETFs Seeing Strong Inflows, Traders Expect ETH to Reach New Lifetime Highs

Ethereum ETFs and Growing Market Activity Could Push ETH to New All-Time Highs, Analysts Say

A recent surge in inflows into U.S.-listed spot ether (ETH) exchange-traded funds (ETFs), combined with increasing activity on the Ethereum blockchain and growing institutional interest, is setting the stage for the second-largest cryptocurrency to potentially break its three-year-old price record in the coming months.

QCP Capital noted that Ethereum has recently shown strong performance, outpacing Bitcoin (BTC) and Solana (SOL) despite initially lagging in the rally. “ETH’s recent strength supports the case for it to retest its all-time high,” QCP Capital stated, highlighting that a continued inflow trend is fueling market optimism.

Ethereum ETFs Show Strong Inflows

“ETH spot ETFs have seen consistent net inflows, with $90.1 million recorded on Wednesday, marking a four-day streak,” QCP Capital reported. Despite some market pullbacks, these inflows indicate a growing sense of optimism around ETH. On Wednesday, ETH gained 11.65%, reaching $3,688, aligning with QCP’s thesis of a shift in capital from Bitcoin to Ethereum.

Between November 22-27, Ethereum ETFs attracted over $220 million, the second-largest inflow period since the ETFs launched in July. This brings total inflows to $240 million, further boosting confidence in ETH’s potential to surpass its all-time high.

ETH’s Price Potential and Market Momentum

“Although ETH has lagged behind BTC and SOL in the rally, its recent momentum makes a retest of the $4,868 all-time high (+35.4%) highly possible,” QCP Capital remarked, pointing to ETH’s price potential as inflows and market activity continue to rise.

Record Levels of Activity on Ethereum

Ethereum’s fundamentals are also showing positive signs. A CoinDesk analysis recently reported that open interest in ETH futures contracts has hit a new record of 6.32 million ETH, worth over $27 billion. This spike in futures activity signals growing institutional engagement with Ethereum.

Ethereum’s options market is also heating up, with more than 2 million active contracts on Deribit, the highest number since June, indicating increased interest from traders.

On-chain data reveals a significant uptick in network activity, including higher revenue, transaction fees, new wallet creation, and blockchain volume, particularly in comparison to the quieter months between May and September.

Ethereum Surpasses Tron in Stablecoin Holdings

Ethereum has also overtaken Tron in terms of USDT (Tether) hosted on its blockchain, a notable achievement. Ethereum now holds $60.3 billion in USDT, surpassing Tron’s $57.94 billion for the first time since June 2022.

These developments suggest that Ethereum is well-positioned to push past its previous all-time high, further solidifying its role as a dominant player in the cryptocurrency market.