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Steve Muchoki
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Key Notes
- Ethereum price is expected to heavily benefit from the ongoing reversal of Bitcoin dominance in the coming months.
- The cash flow to US spot Ether ETFs has significantly declined in the past few days.
After closing the fourth quarter of 2024 with a bullish outlook, Ethereum ETH $3 191 24h volatility: 5.0% Market cap: $384.32 B Vol. 24h: $35.62 B price is preparing to catalyze the much-awaited parabolic phase of the altseason. The large-cap altcoin, with a fully diluted valuation of about $416 billion and a 24-hour average traded volume of around $20 billion, has been attempting to break out of a macro-falling logarithmic trend.
In the weekly time frame, Ether’s price against the US dollar has rebounded from the 50 Moving Average (MA). However, Ether price, in the daily time frame, must regain the 50 MA as a support level and the Relative Strength Index (RSI) pumps above 50% to invalidate the recent market correction.
Furthermore, if Ethereum price loses the support level above $3,300 in the near term, another selloff is awaiting the altcoin industry before the onset of a parabolic cycle. In case of a potential market correction, Ethereum price will find a solid support level above $3K.
Nonetheless, Ethereum price has been preparing for a major bullish uproar in the long haul, after forming a cup and handle pattern in the weekly time frame. Moreover, the ETH/BTC pair has been forming a reversal pattern after being trapped in a falling logarithmic trend in the past three years.
$ETH in preparation for breakout pic.twitter.com/yvircnKZJY
— Mikybull 🐂Crypto (@MikybullCrypto) January 3, 2025
Ethereum Whales Lulls
While the overall supply of Bitcoin BTC $96 152 24h volatility: 6.6% Market cap: $1.90 T Vol. 24h: $64.22 B on centralized exchanges continues to decline to a multi-year low, the supply of Ethereum on CEXes has been rising since the beginning of 2025. According to market data from CoinGlass, Ethereum’s supply on CEXes increased by over 415K in the past 24 hours to hover about 15.79 million at the time of this writing.
The initial demand for Ether by the US spot ETF ETFs during the last few weeks of the fourth quarter has significantly decreased. On Thursday, the US spot ETH ETFs registered a net cash outflow of about $77 million, led by Bitwise’s ETHW and Grayscale’s ETHE.
However, the rest of the US spot Ether ETFs did not bleed on Thursday, thus putting the cumulative total net inflow to about $2.5 billion and the total net assets at around $12.4 billion.
Robust Fundamentals
The Ethereum network remains the undisputed leader in the web3 space, with more than $67 billion in total value locked (TVL) and around $112 billion in stablecoins market cap. Despite the emergence of other competitive layer one (L1) blockchains, led by Solana SOL $186.7 24h volatility: 6.3% Market cap: $90.36 B Vol. 24h: $5.26 B , the Ethereum network has continued to attract more institutional investors.
The upcoming Ethereum Pectra upgrade will enable External Owned Accounts (EOAs) to function like smart contracts, thus enhancing the scalability of smart contracts. With the rising popularity of Ether staking by institutional investors, Ether price is well positioned to grow exponentially in the coming months.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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