As 2025 approaches, Ethereum’s price movement is forming a recognizable bullish pattern, fueled by rising institutional interest, increased on-chain transactions, and significant technical advancements. Recent figures reveal that
Ethereum
(ETH) has maintained its position above the crucial $4,000 threshold, buoyed by renewed spot ETF inflows and heightened confidence from both retail and institutional investors. On Monday, US-listed Ethereum spot ETFs attracted $134 million in new investments, raising total net inflows to $14.49 billion and pushing assets under management to $28.35 billion, according to an
FXStreet report
. This uptick comes after three straight days of outflows, hinting at a possible shift in market sentiment.
This revival mirrors broader market dynamics, with Ethereum ETFs seeing $9.6 billion in inflows during Q3 2025—the largest quarterly figure to date—outpacing Bitcoin ETF performance, as reported by
TradingView
. Experts link this trend to Ethereum’s growing range of applications, such as layer-2 scaling and tokenization, which are boosting network activity and strengthening its long-term value. Meanwhile, a notable on-chain transaction has drawn attention: an early Ethereum participant, wallet 0x3690, moved 1,500
ETH
(valued at $6 million) to Kraken after being inactive for nearly eight years. This wallet originally received 20,000 ETH in 2015 for $6,200, now worth $80 million, according to a
newsBTC report
. Such actions by early investors often reflect strategic repositioning and renewed trust in Ethereum’s core strengths.
Technical signals continue to support a positive outlook. Ethereum’s price is hovering near $3,993, with the 50-day exponential moving average (EMA) serving as both a floor and ceiling, based on a
TradingView analysis
. Surpassing $4,200 could pave the way toward $4,500–$4,700, while falling below $3,800 may lead to further declines. On a broader scale, the Federal Reserve’s dovish stance—expected to lower rates by 100 basis points through 2026—creates a supportive environment for risk assets like Ethereum, according to a
PowerDrill forecast
. Additionally, the recent withdrawal of $780 million in ETH from exchanges over two days points to accumulation by long-term holders, a trend that has historically preceded market rallies.
Forthcoming upgrades are also setting the stage for Ethereum’s expansion. Developers have set December 3 as the mainnet launch date for the Fusaka upgrade, which will introduce 12 Ethereum Improvement Proposals (EIPs) aimed at boosting scalability and security, especially for Layer 2 solutions, as detailed in an
FXStreet forecast
. The most awaited, EIP-7594 (PeerDAS), will enable developers to verify Layer 2 transactions using only a portion of blob data, easing computational demands. After Fusaka, blob capacity will be increased in two stages, further enhancing throughput. These enhancements, together with growing institutional participation in Ethereum staking—expected to yield 4–6% annually—could sustain ongoing demand.
The expansion of the on-chain economy highlights Ethereum’s shifting position in decentralized finance (DeFi). In the first half of 2025, on-chain activity generated $9.7 billion in fees, marking a 41% increase year-over-year, with DeFi making up 63% of total fees, according to a
Yahoo Finance report
. Platforms such as
Aave
and
Morpho
are broadening lending opportunities, while Layer 2 networks like Base and
Arbitrum
lead in transaction volume. This evolution toward settlement-layer economics underscores Ethereum’s transformation from a direct-use platform to one focused on yield and utility.
As Ethereum moves through this crucial period, the combination of institutional inflows, on-chain accumulation, and technical improvements provides a solid base for 2025. Nevertheless, short-term fluctuations remain a concern, and bulls must protect key support levels and maintain strong ETF inflows to reinforce the optimistic outlook, as highlighted by FXStreet.