Ethereum’s price has experienced a decline in recent weeks, despite positive developments such as the increase in exchange-traded funds (ETFs) and staking inflows. On December 29, Ethereum was trading at $3,400, representing a decrease of over 17.2% from its peak earlier this month.
According to data from SoSoValue, daily inflows to Ethereum ETFs rose by $47.7 million last Friday. The funds have recorded inflows for four consecutive days, with only two outflow days in the past 25 days. The cumulative net inflows of these ETFs have reached over $2.68 billion, increasing the total net assets to over $12.1 billion. The BlackRock Ethereum ETF has seen significant inflows, bringing its total assets to $3.58 billion, alongside offerings from Grayscale, Fidelity, and Bitwise.
IntoTheBlock’s data indicates that more investors are engaging in Ethereum staking, with the cumulative ETH staked rising to 55.18 million. The staking market cap has grown to $114.95 billion, with an average reward rate of 3.06%. Staking involves Ethereum holders delegating their tokens to help secure the network and earning fees in return, which have been increasing gradually over recent years. TokenTerminal reports that Ethereum generated over $2.4 billion in 2024, making it the second most profitable network, trailing only Tether.
Analysts maintain a positive outlook, anticipating a potential rebound in Ethereum’s price. A prominent analyst, TMV, suggested in a social media post that Ethereum might recover after completing the fourth phase of the Elliot wave pattern—a technical analysis framework suggesting asset prices move in five stages. The fourth wave is typically bearish, whereas the fifth is often bullish.
On the technical front, Ethereum’s daily chart indicates a retreat after hitting robust resistance at $4,000, influenced by the Murrey Math Lines. Although the price has dipped below the crucial pivot at $3,437, it remains above the 100-day moving average. The accumulation/distribution indicator has increased, reflecting ongoing investor interest.
In line with technical analysis, including the Elliot Wave pattern, Ethereum may see a rally in the coming weeks with a possible next target at $3,750, marking a significant resistance level according to the Murrey Math Lines.
