Ethereum is positioned for a potential rally in 2025 as monthly inflows into Ether exchange-traded funds (ETFs) have doubled. Despite this record-breaking influx, the cryptocurrency’s price remains below the $3,500 resistance level, which would trigger significant liquidations of leveraged short positions totaling over $1 billion. The United States spot Ether ETFs reached a new high in December, with cumulative net inflows exceeding $2.1 billion, nearly doubling from November’s figures.
Although the strong inflows suggest a positive outlook for Ethereum, its price continues to trail, registering an 8.4% decline on the monthly chart and trading at $3,353. However, some traders have benefited from this downtrend, with one crypto trader profiting over $1.1 million on a highly leveraged short position.
The growing ETF inflows are seen as an optimistic sign for Ether’s future price movements, supporting predictions from asset management firm VanEck, which anticipates a peak of $6,000 for ETH in 2025. Despite the price stagnation and current challenges, most analysts remain hopeful about Ethereum’s prospects in early 2025, with forecasts suggesting a potential rally above $4,000 before the January inauguration of President-elect Donald Trump.
While technical chart analysis indicates Ethereum is in an accumulation phase potentially boosting its price past $4,400, a dip below $2,914 could invalidate this view. Ethereum’s current price reflects a 31% decrease from its all-time high of over $4,800 recorded in November 2021.
