Ethereum has outperformed Bitcoin and several altcoins as sentiment improves ahead of the FOMC decision, with whales and corporates ramping up accumulation and futures leverage. U.S. spot Ethereum ETFs have flipped back to net inflows, signaling returning institutional demand and helping sustain the current uptrend despite recent volatility. Analysts say a clean break above key resistance is needed to extend the rally toward $4,000, while a rejection could trigger a pullback if leveraged longs get squeezed.
Ethereum posted gains as cryptocurrency market sentiment improved ahead of the U.S. Federal Open Market Committee interest rate decision, according to market data. The digital asset’s advance exceeded that of Bitcoin and several alternative cryptocurrencies during the trading period.
Ethereum Moves and Market Drivers
The price movement appeared driven by purchasing activity from large-scale investors, according to market observers, while corporate and institutional entities have expanded their holdings. U.S. spot Ethereum (ETH) exchange-traded funds recorded renewed capital inflows during the week, data showed, suggesting institutional participation.
Market analysts are assessing whether the rally can maintain momentum through December. Historical performance data for the month has shown mixed results, though recent market trends indicate positive sentiment.
CoinGlass data indicates Ethereum has delivered positive average returns in December since 2016. The cryptocurrency has registered gains through early December this year, reflecting sustained trader activity, according to the data provider.
On-chain metrics cited by analysts show large holders, commonly referred to as whales, accumulated significant quantities of the cryptocurrency over the past month. The accumulation pattern suggests long-term confidence among major investors, analysts stated.
U.S. spot Ethereum ETFs have attracted institutional capital inflows across recent trading sessions, according to fund flow data. Market expectations regarding a potential Federal Reserve interest rate reduction have supported broader cryptocurrency market sentiment, contributing to the rally.
Some large investors have opened substantial leveraged positions, indicating confidence in potential price appreciation, according to market data. These positions include liquidation levels set below current market prices, meaning a significant price decline would trigger automatic position closures.
Outlook and Key Resistance Levels
Analysts noted that reclaiming a key resistance level could enable the rally to extend, while rejection at that threshold could result in a pullback. Market participants continue to monitor trading volumes and institutional flows as indicators of near-term price direction.