Ethereum targets $4,000 as ETF inflows and institutional buying rise

Performance relative to other cryptocurrencies

After a 7% gain over the past month, Ethereum has delivered slower growth than some alternative cryptocurrencies, including Hyperliquid and Zcash. These assets posted stronger performance during the same period, drawing increased attention from speculative traders.

Despite trailing its peers, Ethereum has shown signs of resilience as it continues to attract new accumulation, primarily driven by institutional and corporate activity.

Technical indicators and market analysis

Two on-chain metrics—volume trends and the MVRV Ratio—signal potential for renewed upside in Ethereum. Analysts have observed that both the seven-day and thirty-day moving averages for ETH transaction volume crossed this week for the first time since November 2025. Similar crossovers in the past have often preceded substantial rallies for the token.

The MVRV Ratio, which measures Ethereum’s market capitalization relative to the total cost basis of all holders, also shifted into positive territory. In the last four cases where this happened, Ethereum’s price moved up to $4,000 or beyond.

Momentum indicators, including the Relative Strength Index at 63, further reinforce this constructive outlook, suggesting continued buying interest despite the recent retreat from $2,800.

Market analyst Daan Crypto Trades described the $2,800 mark as a pivotal zone over the past two years. He observed that market reactions at this price level have frequently been followed by significant moves.

Daan Crypto Trades pointed out that the $2,800 threshold has switched roles between support and resistance many times in the last two years. He noted that repeated tests of this zone often precede large market shifts and continue to hold a key role in Ethereum’s near-term price action.

Charts indicate the possibility of a retracement to $2,600, a psychological threshold where institutional buyers often step in to accumulate more ETH before any substantial rally resumes.

Institutional inflows and accumulation trends

Spot Ethereum ETFs have seen six consecutive trading sessions of positive net inflows, totaling $834 million in new investments. This sustained appetite reflects growing confidence among institutional investors in Ethereum’s medium-term prospects.

Meanwhile, crypto investment company BitMine, led by Fundstrat co-founder Tom Lee, purchased an additional $140 million worth of ETH this week. BitMine acquired 48,049 ETH from a wallet associated with FalconX, according to data from EmberCN and Lookonchain.

BitMine now holds 3,967,210 ETH at an average entry price of $3,074, which is currently valued at about $11.6 billion. An aggressive acquirer in the digital asset space, the firm aims to build a portfolio equaling approximately 5% of Ethereum’s circulating supply.

Mini dictionary: BitMine is a digital asset investment company managed by Tom Lee, focusing on strategic accumulation of large-cap cryptocurrencies through direct purchases and institutional products.

During the opening two weeks of December, BitMine acquired 240,711 ETH, reinforcing its play for a notably larger market share in the Ethereum ecosystem.

Lee recently highlighted improved regulatory clarity in Washington and the increasing participation of institutional investors as supportive developments for cryptocurrencies in 2025.

Tom Lee said expanding institutional acceptance of digital assets and more favorable US policy are key drivers bolstering the case for further growth in crypto markets.

BitMine’s stock has grown by 551% in the past six months. The company remains committed to this high-conviction buying approach, showing little inclination to change its strategy despite market volatility.

Current price targets and resistance levels

ETH trades at $2,713.96, up 1.21% as of Sunday morning UTC. Technical analysts now identify $3,400 as the next major resistance above the $2,800 range. Many view a decisive move past $2,800 as potentially unlocking a new phase of upside for Ethereum, with $4,000 emerging as the medium-term price target.