Ether ETFs Surge to Record Highs: Is a Rally on the Horizon?
A Bullish December Despite Holiday Slump
Even with the usual market slowdown during the holidays, Ether exchange-traded funds (ETFs) shattered records in December. Total net inflows soared past $2.1 billion, nearly doubling November’s $1 billion mark. This remarkable surge in interest has analysts predicting an imminent Ether rally.
According to data from Farside Investors, spot Ether ETFs in the United States hit a cumulative net inflow milestone of $2.5 billion by December 24—just five months after their debut on July 23, 2024. The influx of investment signals growing confidence in Ether’s long-term potential despite current market volatility.
Ethereum ETF Flow
Ethereum ETF Flow (USD million). Source: Farside Investors
Ether Price Struggles Despite Record ETF Inflows
Despite this record-breaking capital inflow, Ether’s price remains in a downtrend. Over the past month, it has dropped 8.4%, trading around $3,353 at the time of writing, according to Cointelegraph Markets Pro.
ETH/USD 1-month chart
ETH/USD, 1-month chart. Source: Cointelegraph
However, not everyone sees this dip as a setback. Some traders are making the most of Ether’s downturn—one trader, in particular, racked up a staggering $1.1 million profit in just two days by shorting Ether using a 50x leveraged position.
While price action may look bearish now, the increasing ETF inflows paint a different picture for the months ahead. Some experts, like asset manager VanEck, believe Ether is still on track for a cycle top of $6,000 in 2025.
Can Ether Break Through $3,500?
One of the biggest questions for traders right now: Can Ether finally break past the stubborn $3,500 resistance level?
If it does, it could trigger massive liquidations—more than $1 billion worth of leveraged short positions across all major exchanges. A forced liquidation like this could send prices soaring. Data from CoinGlass highlights how crucial this price point is for the market.
Ether liquidation heatmap
Ether exchange liquidation map chart. Source: CoinGlass
At the time of writing, Ether is still far from its all-time high of $4,800, recorded in November 2021. But according to technical chart patterns, accumulation waves could soon propel Ether toward a breakout.
What’s Next for Ether in 2025?
Popular crypto analyst TMV believes that Ether is currently in an accumulation phase, setting it up for a potential surge above $4,400 in early 2025. In a December 28 post on X, TMV shared:
“Wave 5 accumulation [is] happening. Even if it sweeps one more time I will buy. Heavy target $4,400.”
ETH/USD Accumulation Chart
ETH/USD, 1-day chart showing accumulation waves. Source: TMV
However, he also warned that a drop below $2,914 would invalidate this bullish thesis.
Adding fuel to the optimism, some analysts even predict Ether could break $4,000 before January 20, when President-elect Donald Trump takes office. If the ETF inflows continue at this pace, a significant rally may not be far off.
Final Thoughts: Are We on the Verge of a Major Breakout?
With ETFs attracting unprecedented investor interest, Ether remains one of the most-watched crypto assets heading into 2025. Though its price faces near-term resistance, the broader trend suggests that Ether could still see new highs in the next cycle.
Will the accumulation phase give bulls enough strength to push Ether past $4,000? Only time will tell—but for now, all eyes are on the $3,500 resistance level.
📢 What do you think? Will Ether break past $3,500 soon? Drop your predictions in the comments!
