Ether exchange-traded funds (ETFs) reached a new milestone in December, setting a monthly record with over $2.1 billion in net inflows. This marks a near-doubling of November’s $1 billion inflows, despite a seasonally illiquid market. Analysts suggest the growing interest in ETH ETFs is an early indicator of a potential price rally heading into 2025.
Record-Setting ETF Inflows Amid Bearish Price Action
According to Farside Investors, cumulative net inflows for Ether ETFs exceeded $2.5 billion by December 24, just five months after their debut in July 2024. This rapid growth highlights increasing investor confidence in Ethereum as a financial asset.
Despite these inflows, Ether’s price has remained subdued. As of December 29, ETH traded at $3,353, reflecting an 8.4% monthly decline. The token is still 31% below its all-time high of $4,800, recorded in November 2021.
Resistance at $3,500 and the Short Liquidation Factor
The $3,500 price level continues to pose a significant challenge for Ether. Breaking past this resistance could trigger the liquidation of over $1 billion in cumulative short positions, according to CoinGlass data.
This situation could create a cascading effect, fueling a rally and pushing Ether toward higher price targets. However, traders have been taking advantage of Ether’s bearish trend, with one trader earning over $1.1 million on a 50x leveraged short position in just two days.
Bullish Projections for 2025
Despite the current downtrend, many analysts and institutional players remain optimistic about Ethereum’s long-term prospects. VanEck, a leading asset management firm, has predicted that Ether could reach a cycle top of $6,000 by 2025.
Additionally, technical analysts suggest that Ethereum has entered an accumulation phase. Crypto analyst TMV highlighted this trend in a recent social media post, projecting ETH could surpass $4,400 during the first quarter of 2025.
