Despite the holiday season’s illiquidity, Ether exchange-traded funds (ETFs) reached a new monthly record in December, surpassing $2.1 billion worth of cumulative net inflows. This significant milestone has bolstered analyst expectations of an incoming rally.
A Record-Breaking Month for ETH ETFs
The United States spot Ether ETFs reached a new monthly record, with December’s $2.1 billion worth of inflows nearly doubling that of November, when the ETH ETFs received just over $1 billion worth of cumulative net inflows, according to Farside Investors’ data.
Ethereum ETF Flow (USD million)
Source: Farside Investors
ETH ETFs surpassed $2.5 billion in cumulative net inflows on Dec. 24, just five months after they debuted for trading on July 23, 2024, as reported by Cointelegraph.
Despite Record Inflows, Ether Struggles to Break Downtrend
Despite the record-breaking inflows into ETH ETFs, Ether’s price remains in a downtrend. As of December 28th, Ether’s price was down 8.4% on the monthly chart, trading at $3,353, according to Cointelegraph Markets Pro.
Source: Cointelegraph
However, some traders are capitalizing on Ether’s downtrend. A savvy crypto trader reportedly made over $1.1 million in just two days after taking a short position on Ether, which effectively bets on its price decline.
Growing ETF Inflows Boost Optimism for Ether’s Price Trajectory
The growing inflows into ETH ETFs are an optimistic sign for Ether’s price trajectory in the next year, further bolstering the predictions of asset management giant VanEck. The company foresees a $6,000 ETH cycle top during 2025.
Can Ether Cross $3.5k Despite $1B in Cumulative Shorts?
The $3,500 price level continues to act as a significant resistance for the world’s second-largest cryptocurrency. A potential Ether rally above $3,500 would liquidate over $1 billion worth of cumulative leveraged short positions across all crypto exchanges, according to CoinGlass data.
Ether exchange liquidation map chart
Source: CoinGlass
At the time of writing, Ether’s price is trading 31% lower than its old all-time high of above $4,800, recorded on Nov. 16, 2021.
Technical Chart Patterns Suggest Accumulation Wave
Based on technical chart patterns, Ether has entered an accumulation wave, which could help ETH price surpass $4,400 during the first quarter of 2025, wrote popular crypto analyst TMV in a Dec. 28 Xpost:
"Wave 5 accumulation [is] happening. Even if it sweeps one more time I will buy. Heavy target $4,400."
Source: Tmv
However, the analyst warned that a correction below $2,914 would invalidate the accumulation wave thesis.
Most Crypto Analysts Remain Optimistic About Ether’s Price Trajectory
Most crypto analysts remain optimistic about Ether’s price trajectory in the first part of 2025. Ether’s price may be on track for a rally above $4,000 before Jan. 20, when President-elect Donald Trump will take office, according to Bybit spokesperson.
Conclusion
Ether exchange-traded funds (ETFs) hit a new monthly record in December, despite the holiday season’s illiquidity. The significant milestone has bolstered analyst expectations of an incoming rally. However, Ether’s price remains in a downtrend, and it is uncertain whether it can break through the $3,500 resistance level. Nevertheless, technical chart patterns suggest an accumulation wave, which could help ETH price surpass $4,400 during the first quarter of 2025.
Stay Up-to-Date with Finance Redefined
A weekly toolkit that breaks down the latest DeFi developments, offers sharp analysis, and uncovers new financial opportunities to help you make smart decisions with confidence. Delivered every Friday
Subscribe by clicking here.
By subscribing, you agree to our Terms of Service and Privacy Policy.
