Ethereum (ETH), the world’s second-largest cryptocurrency, has experienced a downward trajectory in the past few weeks, with its price dipping to $3,400 on Dec. 29, marking a 17.2% decrease from its peak value earlier in the month. Despite this decline, Ethereum continues to showcase robust fundamentals, a positive indication for investors.
According to data from SoSoValue, daily inflows for Ethereum surged by $47.7 million on Friday. Over the last 25 days, inflows have been recorded on four consecutive days, with only two days experiencing outflows. The cumulative net inflows for Ethereum exchange-traded funds (ETFs) have now surpassed the $2.68 billion mark, boosting the total net assets to a substantial $12.1 billion. BlackRock’s Ethereum ETF has seen the highest inflows, growing its total assets to a substantial $3.58 billion. Other key players offering ETH funds include Grayscale, Fidelity, and Bitwise.
Data from IntoTheBlock further indicates a growing number of investors staking Ethereum. The cumulative amount of Ethereum sent to staking has risen to 55.18 million ETH. The staking market cap stands at $114.95 billion, with the average reward rate being 3.06%. Staking, an activity where Ethereum holders delegate their tokens to secure the network, offers investors a return from the network’s fees.
According to TokenTerminal, Ethereum generated over $2.4 billion in 2024, making it the second most profitable network in the industry, following Tether.
Despite the current price slump, some analysts are optimistic that Ethereum’s price could rebound in the near future. TMV, a well-followed cryptocurrency commentator, predicts a rebound as Ethereum completes the fourth stage of the Elliot wave, a unique pattern that identifies five stages that assets experience. Typically, the fourth wave is bearish, followed by a bullish fifth wave.
The daily chart reveals that the ETH price has retracted after encountering substantial resistance at $4,000, an extreme overshoot of the Murrey Math Lines. However, Ethereum has stayed above the 100-day moving average, and the accumulation/distribution indicator has risen, suggesting that investors are buying. Therefore, based on these technicals and the Elliot Wave pattern, Ethereum’s price could potentially rebound in the coming weeks. If this occurs, the next target price could be $3,750, the ultimate resistance point of the Murrey Math Lines.
