Ethereum Rallies 50% In A Month, Trader Predicts 'Legendary Breakout': What's Driving The Surge?

Ethereum ETH/USD is continuing its rally, buoyed by record-breaking ETF inflows and positive market sentiment, with traders remaining bullish on its future performance.

Cryptocurrency	Price	Market Cap	24-Hour Trend	7-Day Trend
Ethereum ETH/USD	$3,738.69	$450.3 billion	+3.7%	+7.9%
Bitcoin BTC/USD	$96,273.28	$1.9 trillion	+1.5%	+3.2%
XRP XRP/USD	$2.61	$148.8 billion	-6.7%	+83%

Trader Notes: Crypto trader The Moon Show highlighted Ethereum’s bullish structure, noting a bounce off ascending support and the formation of a potential 4-hour double bottom.

He projected that breaking resistance could send ETH to $3,900.

$ETH bounced back from the Ascending support and formed a potential 4H double bottom. The target is $3,900🎯 if #Ethereum breaks the resistance! pic.twitter.com/7PNsdc7JyW
— The Moon Show (@TheMoonCarl) December 4, 2024

Widely-followed trader Jelle emphasized that Ethereum’s recent resistance has now turned into support, forecasting a push beyond $5,000.

On a more cautious note, chart analyst Ali Martinez suggested $3,300 as a potential support level and buying opportunity in the event of a pullback. He reiterated his mid-term target of $6,000 and a long-term outlook of $10,000.

Statistics: IntoTheBlock data shows large transaction volume decreasing by 3.1% and daily active addresses falling by 1.6%.

Transactions greater than $100,000 remained relatively flat at 9,874 over the past 24 hours. Exchanges netflows are down by 16.1%.

92% of ETH holders are in profit, with 8% at breakeven.

Coinglass data reports long liquidations hitting a low of $4 million, the lowest since late October. Open interest is at an all-time high of $23.8 billion.

CoinShares reported $634 million in Ethereum inflows over the past week, pushing year-to-date inflows to $2.2 billion.

Community News: Ethereum founder Vitalik Buterin addressed the importance of improving security and privacy for decentralized wallets in his latest blog post.

He also proposed standardizing address formats across Layer-2 (L2) networks like Optimism and Arbitrum to streamline token transfers between networks.

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