Ethereum Surpasses $4.000 as ETFs Record High, DeFi Booms

• Ethereum Surpasses $4.000 on Strong Institutional Demand
• Weekly inflows into Ethereum ETFs surpass $1 billion
• Ethereum’s DeFi ecosystem hits two-year high

Ethereum (ETH) has surpassed the $4.000 mark, reaching $4.009 for the first time since February, marking one of the biggest advances in crypto this year. This movement is driven by strong institutional demand for Ethereum ETFs, which have seen record weekly inflows exceeding $1 billion. This trend reflects a significant increase in investor interest, especially after ETH ETFs began trading in the United States in July this year.

$ ETH shows strength; I expect this one to continue rallying upward in the upcoming period.

First resistance to crack: 0.04 BTC.

Many #Altcoins in the Ethereum ecosystem should still make their big move. pic.twitter.com/hNX5LYtg3b

- Michaël van de Poppe (@CryptoMichNL) December 6, 2024

Since November, Ethereum has recovered about 28% of its value against Bitcoin, rising from 0,0322 BTC to 0,04 BTC. Despite this significant recovery, ETH is still down 34% from its value at the start of 2024. This performance highlights that while the asset is showing strength in the short term, it still faces challenges in reaching the valuation levels of previous years.

At the time of publication, the price of Ethereum was quoted at US$4.018,40, up 3% in the last 24 hours.

The massive inflows into Ethereum ETFs can be attributed to expectations of more favorable regulations under President-elect Donald Trump. This has created “long-awaited excitement” among investors, as noted by analysts. Last week, Ethereum funds saw a net inflow of $634 million, bringing the annual total to a whopping $2,2 billion, surpassing the previous record of $2021 billion in 2.

Despite its recent rally, Ethereum is still down about 17% from its all-time high of $4.878, reached in November 2021. The cryptocurrency is currently trading at $4.024, marking a gain of nearly 4% in the past 24 hours.

Ethereum’s DeFi ecosystem is also contributing to its valuation, with the total value locked (TVL) reaching $70,4 billion, a two-year high. Additionally, funding rates on ETH futures indicate bullish sentiment among investors, suggesting that the asset could continue to gain traction.

With the combination of growing demand for ETFs, a robust DeFi ecosystem, and regulatory optimism, Ethereum is reaffirming its position as one of the top cryptocurrencies in the market.