Ethereum, the world’s second-largest cryptocurrency, is regaining the spotlight as analysts project a significant rebound on the horizon.
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Despite largely missing out on Bitcoin’s 2024 rally, the crypto market is buzzing with optimism about Ethereum’s comeback, with predictions suggesting it could hit new records as early as the first quarter of 2025.
Ready to Come Back
While Bitcoin’s dominance steadily grew throughout 2024, Ethereum moved in the opposite direction, but the coming year could signal a turning point for ETH, according to crypto analysis firm Matrixport.
This shift could be driven by an aggressive accumulation of ETH by traditional finance (TradFi) institutions, fueled by strong inflows into Ethereum exchange-traded funds (ETFs).
“While Bitcoin has led the rally, Ethereum may be the underdog poised for a significant recovery,” analysts noted.
Ethereum ETF Inflows Surged
Ethereum ETFs are experiencing a wave of historic institutional interest, with inflows surging to a record $855 million since December 9.
BlackRock’s ETH ETF (ETHA) led the charge, attracting $523 million in weekly inflows, while Fidelity’s FETH followed with $259 million. Grayscale’s ETHE also saw significant investor activity during the period.
As of December 16, BlackRock’s ETHA secured $30.72 million in inflows, trailed by Grayscale’s ETHE at $7.62 million and Fidelity’s FETH with $4.05 million, according to Sosovalue data .
Exchanges Witness Withdrawals
Alongside renewed investor appetite for ETH through spot ETFs, direct Ethereum holders are also signaling a shift toward long-term strategies.
On December 14, more than 108,000 ETH—worth $418 million—were pulled from exchanges, marking the largest single-day outflow since March.
According to data from Glassnode, this is the largest withdrawal volume recorded since March, indicating the growing confidence in Ethereum’s future prospects as investors opt to hold rather than trade.
Technical Data Supports Bullish Forecasts
Ethereum (ETH) is trading around $4,018, up 6.83% over the past week as it nears a key resistance level at $4,069. A breakout above this threshold could trigger renewed bullish momentum, with prices potentially climbing toward the $4,700 mark—last seen in November 2021.
The Relative Strength Index (RSI) stands at 65.16, signaling strong bullish momentum while remaining below the “overbought” territory.
ETH trading volume surged 57.95% in the past 24 hours to $57.8 billion, according to CoinGlass , with Binance leading at $19.3 billion.
Ethereum’s year-to-date performance now sits at 75.29%, reinforcing its position as the second-largest cryptocurrency with a market capitalization of $483.06 billion.
On The Flipside:
- Ethereum staking outflows indicate a rise in profit-taking, with notable withdrawals from key investors. On December 16, TRON founder Justin Sun alone pulled 52,905 ETH—valued at $209 million—from Lido Finance.
Why This Matters
Ethereum’s recovery is fueled by strong institutional inflows and growing confidence, with rising ETF interest and exchange withdrawals signaling a potential breakout in early 2025.
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