Ethereum Price Analysis: Despite Positive Fundamentals, ETH Sees Retreat

Ethereum’s price has experienced a significant downturn in recent weeks, despite displaying strong fundamentals and increased inflows into exchange-traded funds (ETFs) and staking.

As of December 29, Ethereum’s price stood at $3,400, marking a decline of over 17.2% from its highest level this month. This retreat occurred despite the cryptocurrency’s continued display of strong fundamentals.

Exchange-Traded Fund Inflows

Data shows that daily inflows jumped by $47.7 million on Friday, with the funds experiencing inflows for four consecutive days and outflows on only two days over the last 25 days. The cumulative net inflows of these ETFs have reached over $2.68 billion, bringing the total net assets to over $12.1 billion. Notably, the BlackRock Ethereum ETF has seen the most significant inflows, with its total assets reaching $3.58 billion. Other major players offering ETH funds include Grayscale, Fidelity, and Bitwise.

Ethereum Staking on the Rise

According to recent data, more investors are turning to Ethereum staking, with the cumulative ETH sent to staking rising to 55.18 million ETH. The staking market cap has increased to $114.95 billion, with the average reward rate standing at 3.06%. Staking involves delegating Ethereum tokens to secure the network, with holders receiving fees as payment.

Ethereum’s Profitability

Ethereum has demonstrated significant profitability, generating over $2.4 billion in 2024, making it the second most profitable network in the industry after Tether.

Price Prediction and Analysis

Some analysts are optimistic about Ethereum’s price rebounding in the near term. One highly followed pundit predicts that the coin will rebound after completing the fourth section of the Elliot wave pattern, a unique pattern that identifies five stages that assets go through. The fourth wave is typically bearish, while the fifth tends to be bullish.

According to the Elliot Wave pattern, the next target will be $3,750, the ultimate resistance point of the Murrey Math Lines.

A review of the daily chart shows that ETH price has retreated after finding substantial resistance at $4,000. The coin has moved slightly below the strong pivot reverse point at $3,437 but remains above the 100-day moving average. The accumulation/distribution indicator has also risen, indicating that investors are buying.

Key Takeaways:

  • Ethereum’s price has retreated despite strong fundamentals and increased inflows into ETFs and staking.
  • The cryptocurrency’s price is expected to rebound in the near term, with the next target being $3,750.
  • Ethereum has demonstrated significant profitability, generating over $2.4 billion in 2024.

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