ETH surges 9% with increased capital inflows, bulls set sights on $4,522

• Ethereum is seeing high capital inflows amid a 15% ETH/BTC ratio growth.
• ETH’s open interest and futures premium show high bullish sentiment among traders.
• Ethereum could rally to $4,522 if it sees a surge above a key ascending trendline resistance.

Ethereum (ETH) rallied 9% on Wednesday following increased capital inflows into ETH ETFs and a major uptick in its open interest and futures premium. If the bullish momentum sustains, ETH could overcome its yearly high resistance of $4,093 and rally to $4,522.

Ethereum witnesses high bullish sentiment amid major ETH/BTC transition

Ethereum ETFs recorded net inflows of $40.6 million on Tuesday, marking a third consecutive day of positive flows for the products, per Coinglass data. This comes amid back-to-back net outflows in Bitcoin ETFs.

Unlike previous times where outflows in BTC ETFs drag ETH alongside it, ETH ETFs are beginning to craft their own path.

A potential reason for the positive flows could be investors rotating from Bitcoin into ETH in anticipation of an altcoin season.

Altcoin season is a phase in the cryptocurrency market cycle where investors take profits after benefiting from the Bitcoin bull market and shift their investments into altcoins with Ethereum as the leading alternative.

Most investors are calling an alt season as Ethereum has been outperforming Bitcoin in the past few weeks. Since reaching a low of $0.3204 on November 21, the ETH/BTC ratio — which measures the performance of ETH compared to BTC — has surged over 15%.

ETH/BTC daily chart

ETH’s rise is accompanied by strong bullish sentiment across its derivatives market.

ETH open interest (OI) reached a new all-time high of 6.55 million ETH worth $23.34 billion on Wednesday, continuing its increased growth in the past two weeks, per Coinglass data.

Open interest is the total number of outstanding contracts in a derivatives market. A growth in OI alongside prices signals rising bullish pressure.

ETH Open Interest | Coinglass

Additionally, ETH’s three-month premium — the gap between its futures and spot prices — across crypto exchanges Binance, OKX and Deribit surged to 16%, per Velo data.

Ethereum Price Forecast: ETH could complete move to $4,522 with a surge above an ascending trendline resistance

Ethereum is up 9% after sustaining $58.26 million in liquidations in the past 24 hours, per Coinglass data. Liquidated long and short positions accounted for $28.52 million and $29.75 million, respectively.

The top altcoin has surged above the $3,400 key level and is testing an ascending trendline resistance extending from November 12.

ETH/USDT daily chart

If ETH maintains the bullish momentum and overcomes this trendline resistance, it could rally above its yearly high of $4,093 to $4,522. This move will complete the inverted Head-and-Shoulders rally that ETH has been hinting at in the past two weeks.

The Relative Strength Index (RSI) is trending upward and testing…