As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed numerous market cycles and trends. The recent surge in Ether exchange-traded funds (ETFs) is an interesting development that catches my attention.
In December, Ether exchange-traded funds (ETFs) reached a fresh monthly high, even amidst the seasonal market sluggishness due to holidays, fueling anticipation among analysts for a potential upcoming surge in the market.
In December, the accumulated net inflows for U.S.-listed Ether exchange-traded funds hit a fresh monthly high, exceeding $2.1 billion.
In December, a total of approximately $2.1 billion flowed into Ethereum ETFs, which is almost twice as much compared to November’s inflows of around $1.1 billion. Data from Farside Investors indicates this increase in investment.
On December 24th, five months after being made available for trade on July 23rd, 2024, ETH ETFs collectively saw over $2.5 billion in total net investments, as per the report by CryptoMoon.
Regardless of the significant increases in inflows, Ether continues to struggle against its ongoing decline. At present, Ether’s price stands at $3,353, representing an 8.4% decrease over the monthly period, as per information from CryptoMoon Markets Pro obtained at 9:54 am UTC.
On the other hand, some skilled cryptocurrency traders have profited from Ethereum’s falling trend. One smart trader raked in more than $1.1 million within two days by going short on Ethereum using a 50x leveraged position. This strategy essentially wagers on Ethereum’s price decrease.
As a crypto investor, I find it encouraging to see the increasing inflows into Ethereum-based Exchange Traded Funds (ETFs). This trend is not only positive for Ethereum’s price movement over the next year but also aligns with the bullish forecast of VanEck, a leading asset management firm. They predict that Ether will reach its cycle top of $6,000 by 2025, which makes me optimistic about my investment in this digital asset.
Can Ether cross $3.5k despite $1B in cumulative shorts?
For now, the global second-largest cryptocurrency struggles to break through the barrier set by the $3,500 mark, which remains a substantial obstacle in its path.
If Ether’s price surges beyond $3,500, it could trigger the liquidation of over a billion dollars in combined leveraged short positions on all cryptocurrency platforms, as per data from CoinGlass.
Currently, at the point of this composition, Ether’s value is being traded approximately 31% lower than its peak historical maximum of over $4,800, which was achieved on November 16, 2021.
According to the analysis of technical chart patterns by well-known crypto expert TMV, posted on Dec 28, Ether is currently moving into a phase of accumulation. This could potentially drive the price of ETH above $4,400 during the first quarter of 2025.
“Wave 5 accumulation [is] happening. Even if it sweeps one more time I will buy. Heavy target $4,400.”
But the analyst cautioned that if the price drops below $2,914, it could challenge or even negate the theory suggesting an accumulation phase.
Most crypto analysts remain optimistic about Ether’s price trajectory in the first part of 2025.
According to a representative from Bybit, there’s speculation that the value of Ether could surge past $4,000 by January 20th, which is when President-elect Donald Trump is due to be inaugurated, potentially indicating an upward price trend.
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2024-12-28 14:27