Ethereum (ETH) Price Surges 8% as US Spot ETFs Register Highest Cash Inflow of $295 Million Since Inception

The altcoin market, led by Ethereum (ETH) and Dogecoin (DOGE), has gained significant bullish momentum following the recent Bitcoin price entry into the price discovery phase.

The US spot Ethereum ETFs saw the highest cash inflow since inception on Monday, with over $295 million being added to the funds.

This comes as the altcoin market, led by Ethereum ( ETH $3 25224h volatility: 3.0%Market cap: $391.45 BVol. 24h: $73.19 B) and Dogecoin ( DOGE $0.3624h volatility: 24.9%Market cap: $52.80 BVol. 24h: $43.29 B), has gained massive bullish momentum following the recent Bitcoin price entry into the price discovery phase.

Ethereum price surged over 8 percent in the past 24 hours to trade about $3,405 on Tuesday, November 12, during the mid-London session.

As a result, the large-cap altcoin, with a fully diluted valuation of about $410 billion and a daily average traded volume of about $70 billion, has successfully rebounded from the lower border of a rising trend that began earlier last year.

For the first time since March this year, Ethereum’s daily Relative Strength Index (RSI) surged over the 70 percent level, suggesting the resurgence of bullish sentiments. Moreover, Ether's price has successfully regained the 200-day Moving Average (MA) as a support level after rebounding from the 50 MA.

If the Ethereum bulls persist in the near term, Ether's price will likely pump towards its all-time high before the end of this year.

Institutions are also favoring large-cap altcoin in their crypto cash rotation, as they anticipate an imminent altseason.

Major Factors Driving Ethereum BullsThe demand for Ethereum to operate the largest Web3 ecosystem, which includes over $61 billion in total value locked (TVL) and more than $91 billion in the stablecoins market, has spiked significantly.

This is happening as the crypto bullish outlook continues to improve. Institutional investors have been betting on the Ether price inevitably breaking out after being trapped in a bearish consolidation for the past eight months.

According to the latest market data, the US spot Ether ETF issuers, led by BlackRock’s ETHA, saw a daily total net inflow of about $295 million on Monday, the highest recorded since the historic approval earlier this year.

In the past four days, the US spot Ether ETF issuers have reported a net cash inflow of about $500 million, thus signaling a rising demand.

Moreover, over $200 million has been liquidated from the ETH leveraged market due to the increased Ether volatility in the past few days.

Most of the short ETH traders have been liquidated in the past two days, escalating the ongoing crypto short squeeze.

Meanwhile, the Ethereum market has been responding to the ongoing market shift in major jurisdictions, which will increase the overall crypto liquidity.

For instance, the US Federal Reserve and the Bank of England initiated their respective rate cuts on Thursday last week, to bolster their economic outlook ahead.

Additionally, the Chinese government is expected to inject up to $1.4 trillion in the near term to bolster its economic outlook amid the ongoing de-dollarization.

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Steve Muchoki on LinkedInJulia Sakovich on Xoutput