The price of Ethereum (ETH) surged above $4,000 on Friday, a level that hasn’t been reached since it briefly touched that threshold in March.
This upward movement is driven by the increasing demand for Ethereum ETFs, as the funds collectively experienced their highest-ever daily net inflow of over $428 million on December 5, according to data from CoinGlass.
The significant inflows into Ethereum ETFs coincide with growing excitement from analysts. Plume CEO Chris Yin stated in an interview with Decrypt in November that the anticipation of more favorable cryptocurrency regulations under President-elect Donald Trump is generating “overdue excitement” for these funds, which started trading in the U.S. in July.
This excitement translated into substantial investments this week, with Ethereum ETF products attracting more than $750 million in total net inflows, as reported by CoinGlass. Meanwhile, the price of Bitcoin broke the $100,000 milestone for the first time.
Both Ethereum and Bitcoin ETFs have been experiencing record-breaking inflows since Trump secured a second term in the White House one month ago.
Throughout the year, Ethereum has been outperformed by other major cryptocurrencies like Solana (SOL) and Bitcoin (BTC), failing to reach new all-time highs as others did. However, among these major assets, Ethereum has achieved the highest gain in the past week, surging over 10% during that period.
Despite surpassing $4,000, Ethereum is still 17% lower than its all-time high of $4,878, which was recorded in November 2021, according to CoinGecko. Currently, ETH is trading at $4,024, representing a gain of nearly 4% in the last 24 hours.
Edited by Andrew Hayward