ETH is nearing its all-time high, seeing record ETF inflows and a high preference over Bitcoin

Ethereum price today: $4,030

• According to Bybit, Ethereum has become more attractive to investors than Bitcoin since the US elections.
• Ethereum ETFs recorded their highest single-day net inflows after raising $428.5 million.
• Ethereum could soon reach a new all-time high if it breaks the annual peak resistance at $4,093.

Ethereum (ETH) is trading above $4,000 for the first time since March on Friday after seeing record ETF inflows and higher investor preference over Bitcoin.

Investors prefer Ethereum over Bitcoin

Since the U.S. election, Ethereum has eclipsed Bitcoin, and its growth accelerated after SEC chief Gary Gensler announced his resignation on Jan. 20, Bybit noted in a Dec. 5 “Volatility Review” report. The report noted that traders are beginning to shift their preferences to ETH, as evidenced by the notable shift in the ETH/BTC ratio.

The ratio has risen from a low of 0.31 on November 19 to over 0.4 on Friday. ETH’s outperformance over Bitcoin has also led to a decline in Bitcoin dominance, leading to speculation about the start of an altcoin season.

ETH/BTC daily chart

“The skewness in option prices has shifted in favor of claims for both BTC and ETH, but the skewness in ETH has remained more robust,” Bybit wrote. “This suggests stronger bullish sentiment for ETH as traders position themselves more aggressively for a price rise relative to Bitcoin.”

Meanwhile, Ethereum rose above $4,000 on Friday for the first time since March following a significant increase in demand from institutional investors via ETFs.

Ethereum ETFs recorded their highest single-day net inflows ever on Thursday after raising $428.5 million, according to Coinglass data. The products have now recorded nine consecutive days of positive inflows, with their cumulative net inflows since launch surpassing $1 billion.

Ethereum Price Prediction: ETH is likely to reach a new all-time high if it clears annual high resistance

According to Coinglass data, Ethereum is up more than 5% in the last 24 hours, triggering futures liquidations worth $75.14 million. The amount of long positions liquidated is $44.6 million and short liquidations are $30.54 million.

ETH is testing its annual maximum resistance at $4,093 after rising above the upper resistance of the descending trendline of a cup-handle pattern.

ETH/USDT weekly chart

If ETH clears this resistance, it could extend the rally to its all-time high resistance at $4,868. A successful rise above $4,868 could see ETH rise to $5,627.

The Relative Strength Index (RSI) and Awesome Oscillator (AO) momentum indicators are above their neutral values, indicating prevailing bullish sentiment.

A weekly candlestick close below the $2,817 support level would invalidate this thesis.