Ethereum Sees Growing Institutional Interest Ahead of Potential 2025 Price Rally as Monthly Ether ETF Inflows Double
In a significant development, Ether exchange-traded funds (ETFs) have hit a new monthly record in December, despite the holiday illiquidity. This achievement has bolstered analyst expectations of an incoming rally for the second-largest cryptocurrency.
Record-Breaking Inflows
The United States spot Ether ETFs reached a new monthly record, surpassing $2.1 billion worth of cumulative net inflows during December. According to data from Farside Investors, this figure is nearly double that of November, when the ETH ETFs received just over $1 billion worth of cumulative net inflows.
Cumulative Net Inflows (USD million)
| Month | Cumulative Net Inflows |
| — | — |
| December 2024 | $2.1 billion |
| November 2024 | $1.1 billion |
Source: Farside Investors
The Ether ETFs have surpassed $2.5 billion in cumulative net inflows on Dec. 24, just five months after they debuted for trading on July 23, 2024.
Ether Price Remains Under Pressure
Despite the record-breaking inflows, Ether is unable to escape its current downtrend. The price of Ether has dropped by 8.4% on the monthly chart and is currently trading at $3,353 as of 9:54 am in UTC.
ETH/USD, 1-Month Chart
| Price | Date |
| — | — |
| $3,353 | January 2025 |
Source: Cointelegraph Markets Pro
However, some traders are capitalizing on Ether’s downtrend. A savvy crypto trader was up over $1.1 million on his 50x leveraged Ether position in just 2 days after taking a short position on Ether.
Growing ETF Inflows and Future Price Trajectory
The growing inflows of Ether ETFs are an optimistic sign for Ether’s price trajectory for the next year, further bolstering the predictions of asset management giant VanEck. They foresee 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.
Ether Exchange Liquidation Map Chart
| Price | Date |
| — | — |
| $3,500 | January 2025 |
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. Popular crypto analyst TMV wrote in a Dec. 28 Xpost:
"Waves 5 accumulation [is] happening. Even if it sweeps one more time I will buy. Heavy target $4,400."
ETH/USD, 1-Day Chart. Accumulation Waves
| Price | Date |
| — | — |
| $3,353 | January 2025 |
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. The 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.
Conclusion
The record-breaking inflows of Ether ETFs are an encouraging sign for the future price trajectory of Ether. While the current downtrend remains, analysts and traders are optimistic about a potential rally above $4,000 in the first part of 2025.
