- Ethereum ETFs just recorded their highest single-day inflows, surpassing Bitcoin ETFs
- ETH might be on the verge of a major rally after hikes in Exchange Reserves and Open Interest
Bitcoin and Ethereum ETF approvals earlier this year were no doubt essential milestones for institutional liquidity. While Bitcoin has maintained dominance in terms of inflows, Ethereum ETF daily inflows just pulled off a lead for the first time in history.
According to the latest ETF data, Ethereum ETF inflows peaked at $332.9 million on Friday. Meanwhile, Bitcoin had $320 million worth of ETF inflows during the same trading session. This is a noteworthy outcome because it was the first time that Ethereum ETFs outperformed Bitcoin ETFs in terms of inflows.
In fact, Friday also recorded the highest single day inflows. Friday recorded not only the highest inflows reported in November, but also across its entire history since Ethereum ETFs first started trading.
Is Ethereum on the verge of a major breakout?
Is the fact that Ethereum ETFs’ daily inflows outperformed Bitcoin ETF inflows a sign that ETH is heading for a major rally? Well, Bitcoin dominance has been declining, which may explain why Ethereum has been receiving more investor attention. However, that’s not all.
ETH gained a lot of bullish momentum during the week, confirming a breakout from its long-term wedge pattern. The same breakout also highlighted a long-term bull flag for the cryptocurrency. These factors, combined, suggested that ETH could be on the verge of a bullish December.
Source: TradingView
At the time of writing, the altcoin was valued at $3,694. Sustained demand after a breakout from the descending resistance line could be a sign of rising bullish optimism.
Additionally, there seemed to be multiple other signs that aligned with the aforementioned findings. For example, ETH’s Open Interest peaked at $24.08 billion on 28 November – Its highest level, ever.
source: Coinglass
The new Open Interest record confirmed that strong ETH derivatives demand was at play, alongside ETFs demand.
Exchange Reserves’ data also confirmed growing confidence among ETH holders. In fact, figures for the same grew by about 750,000 coins in the last 30 days, bringing the total reserves on exchanges to around 19.72 million ETH.
Source: CryptoQuant
Ethereum’s Exchange Reserves are now at levels last seen in April 2024. The cryptocurrency has so far achieved 2 months of positive exchange reserves for the first time this year.
This is a sign of the shifting sentiment among ETH holders and could allude to declining ETH sell pressure on the charts. If that is so, ETH might soon be heading to price levels above $4,000 and beyond.
