Ethereum (ETH) Price: Top Analyst Predicts Major Breakout as ETF Inflows Hit 6-Week High

TLDR

• Ethereum price has risen 25% from its November lows as spot ETH ETFs recorded $177.6 million in inflows on December 10, the highest single-day total in six weeks
• Technical analyst Crypto Batman identified an inverse head and shoulders pattern on ETH’s weekly chart with a neckline at $4,062, suggesting potential upside of 25% from current levels
• Daily chart shows bullish falling wedge pattern and ETH has moved above its 50-day Exponential Moving Average
• Exchange balances of Ethereum have dropped to record lows as investors move tokens off exchanges, indicating reduced selling pressure
• Tom Lee’s BitMine continues accumulating ETH with plans to own 5% of total supply, while major U.S. wirehouses now offer crypto ETFs to clients

Ethereum price closed higher for the fifth straight day on December 10, trading around $3,210 as investors awaited the Federal Reserve’s interest rate decision. The second-largest cryptocurrency has gained approximately 25% from its recent low of $1,395 in November.

Technical analyst Crypto Batman posted on X that Ethereum has formed an inverse head and shoulders pattern on the weekly timeframe. This bullish formation includes an inverted head at $1,395, a left shoulder at $2,130, and a right shoulder at $2,633.

The pattern’s neckline sits at $4,062. A breakout to this level would represent a 25% increase from current prices. However, the analyst noted that weekly chart patterns typically take considerable time to develop. This particular formation has been building for nearly two years.

The daily chart presents additional bullish signals. Ethereum has completed a falling wedge pattern, which occurs when two descending trendlines converge and the price breaks upward. The cryptocurrency has also crossed above its 50-day Exponential Moving Average.

ETH is now testing the Supertrend indicator, a technical tool that helps identify trend direction. A move above this indicator would strengthen the bullish case for the token.

ETF Inflows Drive Demand

Spot Ethereum ETFs attracted $177.6 million on Tuesday, December 10, according to data from SoSoValue. This marked the largest single-day inflow in six weeks. Monday’s inflows totaled $55 million, bringing cumulative inflows to $13 billion since launch.

Market observers describe the activity as capital rotation from Bitcoin into Ethereum. Institutional investors appear to be diversifying their crypto holdings rather than concentrating solely in BTC.

Major U.S. wirehouses recently began offering crypto ETF products to their clients. This development opens access to what analysts estimate could be trillions of dollars in potential investment capital. Previously, these investors had limited options for gaining exposure to digital assets through traditional financial channels.

Exchange Balances Drop to New Lows

Ethereum’s supply on cryptocurrency exchanges has fallen to historic lows. When investors move tokens off exchanges into private wallets, it typically signals an intention to hold rather than sell. Lower exchange balances reduce immediate selling pressure.

Tom Lee’s investment firm BitMine has been steadily purchasing ETH with a stated goal of owning 5% of the total token supply. This ongoing accumulation adds to the broader demand picture.

Ethereum functions as the primary platform for decentralized finance applications, non-fungible tokens, and Layer-2 scaling solutions. The network’s utility extends beyond simple value storage, supporting a wide range of blockchain-based services and applications.

The cryptocurrency trades above its 50-day moving average while forming multiple bullish chart patterns across different timeframes. ETF products continue attracting fresh capital as institutional and retail investors gain easier access to ETH exposure through regulated investment vehicles.

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