Ethereum (ETH) 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?

Ethereum (ETH) ETFs saw record daily inflows on Friday, outpacing Bitcoin (BTC) ETFs for the first time ever, as per the latest ETF data.

Precisely, Ethereum ETFs saw $332.9 million in inflows on Friday. Comparatively, Bitcoin ETFs saw $320 million in ETF inflows during the same trading session. Notably, this was the first time that Ethereum ETFs outperformed Bitcoin ETFs in terms of inflows.

Moreover, Friday also saw 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 ETH setting up for a massive breakout?

While Bitcoin’s dominance has been decreasing, which may explain why Ethereum has been getting more investor attention, that’s not all there is to it.

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. Together, these factors suggested that ETH might be setting up for a bullish December.

At press time, the altcoin was valued at $3,694. Sustained demand after a breakout from the descending resistance line could be hinting at rising bullish optimism.

Further, there were multiple other signs that seemed to align with the aforementioned findings. For instance, ETH’s Open Interest peaked at $24.08 billion on 28 November – Its highest level, ever.

The new Open Interest record confirmed that strong ETH derivatives demand was at play, complimenting the ETFs demand.

Exchange Reserves’ data also pointed towards 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.

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 hints at the shifting sentiment among ETH holders and could be alluding to declining ETH sell pressure on the charts. If so, ETH might soon be heading to price levels above $4,000 and beyond.