Ethereum Gears Up to Reach New Highs: Daily Transactions Surge and ETH ETFs Attract Major Investments

Ethereum Gains Momentum: Trading at $3,919 After Hitting 3,988. Ethereum gained momentum on positive sentiment, hitting a high of $3,988 yesterday and currently trading at around $3,919.
 

Surge in Activity: Daily Transactions Jump to 7.5 Million
In December 2024, Ethereum's popularity has soared, with daily transactions jumping to between 6.5 million and 7.5 million from around 5 million earlier in the year. This surge in activity has led to a significant increase in the amount of Ether (ETH) being burned, rising from about 80 ETH per day in August to around 2,700 ETH per day in December. As more ETH gets burned, the overall supply of Ether is decreasing, creating a deflationary effect. This means that the value of ETH may increase due to its reduced supply. Overall, the network's increased usage is driving these important changes.

Investor Confidence Grows: Significant Inflows into Ethereum ETFs
In December 2024, Ethereum exchange-traded funds (ETFs) saw a big increase in investments, reflecting enhanced investor confidence in Ethereum as an asset. On December 12, 2024, about $273.7 million flowed into these ETFs, bringing the total since late November to around $1.29 billion. This marks the 13th straight day of positive inflows for U.S. spot Ethereum ETFs, showing strong ongoing interest. BlackRock's ETHA was the top fund with $74.2 million in inflows on December 11. Other contributors included Grayscale's Mini ETH Trust and Bitwise’s ETHW, which saw inflows of $13.4 million and $8.2 million, respectively. However, Grayscale’s ETHE had an outflow of $2.3 million, indicating some changes in investor preferences.

Key Technical Levels: Resistance and Support for Price Movements
Bullish momentum may be achievable if Ethereum maintains above $3,400. The key near-term resistance is at $4,100, with significant upward movement targeting $4,500, $4,866 (all-time high), or even $5,000. Conversely, immediate support is around $3,820, $3,696, and $3,400. A fall below $3,400 will confirm continued bearish momentum, potentially leading to price drops to $3,200, $3,000, $2,770, $2,500, or $2,300. A breach below $2,000 could see Ethereum plummet to $1,800.

Trading Strategies for Optimistic Investors
Traders may consider buying on dips around $3,600 with a stop-loss of around $3,400 and a target price of $4,093 or $4,865.