Key Highlights
- Ethereum smashes through $4,000, marking its first return to this level since March.
- Record-breaking $428M flows into U.S. Ethereum ETFs in a single day, signaling massive institutional interest.
- Ethereum’s Realized Cap hits $243.45B, a bullish indicator pointing to further price momentum.
Paradisers! Is Ethereum about to steal Bitcoin’s thunder? As Bitcoin basks in the glory of hitting $100K, Ethereum is quietly staging its own jaw-dropping comeback.
The second-largest cryptocurrency just surged past $4,000, a level it hadn’t touched in months, fueling speculation that the next stop could be its 2021 all-time high or beyond.
The Big Push: ETFs and Institutional Frenzy
Driving Ethereum’s meteoric rise is a record-setting influx into U.S.-listed Ethereum spot ETFs. On December 5 alone, a staggering $428 million flowed into these funds, breaking all previous single-day records.
This data from MCP Onchain is a flashing neon sign for bullish institutional interest in ETH.
What’s even more intriguing? Unlike staking directly in Ethereum, these ETFs don’t offer staking rewards. Yet, the inflows keep pouring in, reflecting a rock-solid confidence from big-money players.
On the futures front, the story is equally electrifying. Ethereum futures contracts on the CME Group exchange have hit record-breaking open interest levels, further underscoring Wall Street’s growing appetite for ETH.
Network Data Signals Bullish Momentum
Ethereum’s rally isn’t just riding on hype, it’s backed by strong on-chain metrics. The Realized Cap, which calculates the total value of coins based on their last transaction price, has hit an all-time high of $243.45 billion. After months of decline, this surge signals a significant shift in sentiment.
Why does this matter? Historically, spikes in Realized Cap have preceded massive price rallies. This metric essentially shows that holders are holding onto ETH bought at lower prices, suggesting a collective belief that there’s plenty of upside ahead.
MVRV: The Hidden Bullish Indicator
Ethereum’s Market Value to Realized Value (MVRV) Long/Short Difference has also entered a positive zone, currently sitting at 5.67%. This metric compares the unrealized profits of long-term holders to short-term traders. Positive MVRV levels often signal undervaluation and precede price booms.
The last time Ethereum’s MVRV looked this good, its price surged to $4,100. If history repeats itself, this rally could still be in its early stages.
Trump Effect and Market Sentiment
Ethereum’s rise coincides with a broader market rally fueled by the ripple effects of Donald Trump’s election win. With pro-crypto advocate Paul Atkins now set to head the SEC, the market is buzzing with optimism over regulatory reforms.
Since Trump’s victory on November 5, Ethereum has surged 61%, even outpacing Bitcoin’s gains. This renewed faith in crypto assets could serve as a tailwind for
