The cryptocurrency market has been experiencing a rollercoaster ride in recent times, with various asset classes showing significant fluctuations. However, amidst the holiday season’s liquidity crunch, Ether exchange-traded funds (ETFs) have managed to achieve a remarkable milestone – surpassing $2.1 billion worth of cumulative net inflows in December.
A Record-Breaking Month for Ether ETFs
According to data from Farside Investors, the United States spot Ether ETFs received nearly double the amount of November’s cumulative net inflows in December. The month saw a staggering $2.1 billion worth of inflows, with the ETH ETFs surpassing $2.5 billion in cumulative net inflows on December 24.
The rapid growth in Ether ETF inflows has been attributed to various factors, including the increasing adoption and acceptance of cryptocurrency as a viable investment option. The launch of Ether ETFs in July 2024 marked a significant milestone for the cryptocurrency market, providing institutional investors with a more accessible and convenient way to invest in Ethereum.
Despite Record Inflows, Ether Price Remains Under Pressure
While the record-breaking inflows into Ether ETFs are an optimistic sign for the cryptocurrency’s price trajectory, its current downtrend remains intact. The ETH price has experienced a decline of 8.4% on the monthly chart, trading at $3,353 as of 9:54 am in UTC.
The inability of Ether to break through the resistance level of $3,500 has been attributed to various factors, including the accumulation of leveraged short positions across all crypto exchanges. A potential rally above $3,500 would liquidate over $1 billion worth of cumulative shorts, potentially triggering a significant price increase.
Growing Optimism for Ether’s Price Trajectory
Despite the current downtrend, most crypto analysts remain optimistic about Ether’s price trajectory in the first part of 2025. The predictions of asset management giant VanEck, which foresees an $6,000 ETH cycle top during 2025, have further bolstered expectations for a potential rally.
The growing optimism is also reflected in the accumulation wave thesis proposed by popular crypto analyst TMV. According to this theory, Ether has entered an accumulation wave that could help ETH price surpass $4,400 during the first quarter of 2025.
Technical Analysis: Accumulation Waves and Price Targets
TMV’s analysis of the technical chart patterns suggests that Ether is on the cusp of a significant price increase. The analyst notes that the current accumulation wave has the potential to propel ETH prices above $4,400 during the first quarter of 2025.
However, it is essential to note that a correction below $2,914 would invalidate the accumulation wave thesis. This highlights the importance of monitoring market trends and adjusting investment strategies accordingly.
Conclusion
The record-breaking inflows into Ether ETFs have provided a significant boost to the cryptocurrency’s price trajectory for 2025. Despite the current downtrend, growing optimism among analysts suggests that Ether may be on the verge of a significant price increase.
As the market continues to navigate through its complexities, investors and traders must remain vigilant and adaptable. The accumulation wave thesis proposed by TMV offers a promising outlook for Ether’s price trajectory in the first part of 2025.
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