Market sentiment remains divided on Ethereum’s prospects of reaching the $5,000 mark by year-end. On-chain options protocol Derive reports that the probability of ETH hitting $5K stands at less than 10%.
Conversely, crypto trader CoinMamba maintains an optimistic view, setting a target of $5K for Ethereum by December 27. Meanwhile, Ethereum contributor Eric Conner pointed to substantial daily inflows into Ethereum ETFs as a potential catalyst for a supply-side crisis, suggesting that institutional buying is ramping up and could impact Ethereum’s price trajectory.
Regulatory Uncertainty Surrounds Ethereum’s Future
Goldman Sachs CEO David Solomon emphasised at the Reuters Next event that the regulatory landscape for cryptocurrencies remains murky. He pointed out that, as a regulated banking institution, the firm is currently unable to own cryptocurrencies like Bitcoin or Ethereum. However, Solomon indicated that if regulatory conditions were to change, Goldman Sachs would explore the possibility of making markets in Bitcoin and Ethereum, suggesting a potential shift in the firm’s stance on digital assets.
Goldman Sach’s Involvement in Crypto Markets
Despite the regulatory hurdles, Goldman Sachs has already shown significant interest in cryptocurrencies. This year, the investment banking giant invested heavily in spot exchange-traded funds (ETFs) linked to both Bitcoin and Ethereum. A recent 13F filing revealed that the bank holds $710 million across multiple Bitcoin ETFs and a significant position in Ethereum ETFs, including a $25.16 million split between Greyscale Ethereum Mini Trust and Fidelity Ethereum Fund. These investments highlight the firm’s commitment to digital assets, signalling a potential future role in crypto markets if regulatory conditions become more favourable.
Also read…..
Price Support and Resistance Zones
Ethereum’s price has been consolidating around the $3,500 support level, with signs of stabilisation above this zone. Analysts observe a key bearish trend line forming with resistance at $3,740 on the hourly chart. If Ethereum can maintain support above $3,500, it could aim for a breakout above $3,750 and possibly towards $4,000. However, if the price fails to surpass $3,750, another decline could be imminent, with support levels around $3,550 and potentially down to $3,420.
Impact of Institutional Inflows
Ethereum’s market appeal is evident from the steady inflows into Ethereum-focused ETFs. Data from CryptoQuant indicates that Ethereum accumulation addresses now hold approximately $78 billion worth of ETH. Institutional interest is growing, with notable spikes in ETF inflows observed in recent months.
Despite this demand, Ethereum’s price movements have not mirrored those of Bitcoin, which suggests it may trail behind in this market cycle. Analysts highlight that Ethereum’s underperformance relative to Bitcoin might be a sign of evolving market dynamics, with Ethereum potentially poised for a critical pivot point if current market conditions persist.
Written By Fazal Ul Vahab C H
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
