Ethereum Price Forecast: ETH breaks $4,000 as ETF Inflows set $428M record

Ethereum price analysis

Ethereum price topped out at $4,087 on Friday, its highest in three years. On-chain data shows the rally is driven by US corporate investors reacting to recent policy musings from President-elect Donald Trump’s presidential transition committee.

Ethereum price crosses $4K for first time in three years

Crypto market-leaders Ethereum, Bitcoin and XRP all recorded considerable gains within the daily time frame. For Ethereum the rally appears to be closely linked to potential regulatory changes, inferred after Trump nominated Paul Atkins as Gary Gensler’s replacement as US Securities & Exchange Commission (SEC) Chair.

The chart above shows how Ethereum price surged 11.2% in the last 24 hours. Having traded as low as $3,677 on December 5, ETH breached the $4,000 resistance on Friday. At press time, ETH price has retraced mildly to find support above the $4,040 mark. 

However, vital market indicators suggest rising demand from US corporate investors could potentially drive the rally further toward its all-time high of $4,897 recorded back in November 2021. 

Ethereum ETFs see record $428M inflows after Trump nominated Gensler’s replacement 

First, on December 2, Bernstein analysts had hinted that the SEC could be on the verge of approving staking yield for crypto ETFs. This sentiment was reinforced when Trump officiall announced the nomination of Paul Atkins, a candidate viewed as a crypto-friendly replacement for the outgoing Gary Gensler. 

In reaction to this development, investors instantly swooped in to acquire ETH, driving record inflows into Ethereum spot ETFs.

The SosoValue chart below tracks the daily net-inflows recorded by the 11 US-approved ETH spot ETFs. 

As depicted above, Ethereum spot ETFs recorded cumulative net-inflows of $428 million on December 5. Zooming out, this represents the highest single day inflows since the ETFs began trading officially on July 23. 

Ethereum price forecast: ETF run could trigger $4,500 rally

Ethereum’s bullish momentum remains intact as the 4-hour chart reflects significant technical strength. The price is trading well above the 20-period double EMA, which serves as dynamic support, reinforcing the ongoing uptrend. A consistent upward slope in the double EMA signals strong buying interest and a healthy bullish structure.

Rising green bars on the bull-bear power indicator also show increased market participation during the recent price rally. This surge in volume underscores heightened interest, likely driven by institutional investors reacting to positive regulatory developments observed this week.

The Keltner Channel indicator also confirms the bullish bias with Ethereum trading near the upper boundary. This alignment signifies strong upward momentum as prices remain within the overbought zone without significant corrections. A continuation of this pattern could push Ethereum toward the next psychological target of $4,500.

However, traders should monitor for potential retracements to $4,024, where the middle Keltner band aligns with immediate support. As long as ETH sustains above this level, the bullish outlook remains intact. Breaking the $4,100 level with increased volume could pave the way for a rally toward $4,500 and to potentially test its 2021 high of $4,897.

A correction below $3,900, however, might signal short-term profit-taking. Overall, Ethereum’s technical and fundamental backdrop remains robust, favoring bulls in the near term.