Ethereum’s price recovery hits $3,700, fueled by growing institutional demand and $305 million in daily ETF inflows. Will the declining Bitcoin dominance hinting at a new altcoin season drive ETH price for a new all-time high?
As Bitcoin BTC $105 933 24h volatility: 0.4% Market cap: $2.11 T Vol. 24h: $16.19 B price gradually reclaimed $98,000, the total crypto market cap increased by 1.41% to $3.41 trillion. With the recovery rally in the broader market, Ethereum ETH $2 572 24h volatility: 1.6% Market cap: $310.49 B Vol. 24h: $11.69 B has surpassed the $3,700 level.
With an intraday gain of 2.01%, Ethereum is finally gaining bullish momentum after the 10% fall over the past two days. One key driving factor in the bullish recovery is the increased institutional demand.
Matrixport Reports Higher Price Potential in Ethereum
A recent Matrixport report suggests that the surge in Ethereum ETF demand signals a potential for higher prices in 2025. The basis of this prediction is the Ethereum ETF demand netting $1.8 billion over the past 12 days.
Furthermore, during this rally, Ethereum ETFs recorded zero single days of net selling. Of these 12 days, three daily net inflows exceeded $300 million.
When adjusted for market cap, this equals nearly $1.2 billion daily for Bitcoin. However, it considers that Ethereum’s market cap is roughly 25% of Bitcoin.
One key factor driving institutional demand is the Trump administration’s assuming of US presidential powers in 2025. Furthermore, the new fiscal year for U.S. mutual funds starting on December 1 has increased anticipation for the 2025 calendar year.
Considering that the demand persists, Matrixport believes Ethereum will reach significantly higher prices in 2025.
Ethereum ETFs Net $305M on December 10
Over the past 24 hours, the total daily net inflow of the Ethereum ETFs market has reached $305.74 million. Among the top performers, Fidelity’s FETH recorded a net inflow of $202.23 million, followed by BlackRock’s ETHA with $81.66 million.
The total net assets of the US Ethereum spot ETF have reached $12.46 billion, dominating 2.84% of the Ethereum market cap.
Altcoin Season to Drive Ether
In a recent tweet from Titan of Crypto, an independent analyst highlights the possibility of a new altcoin value, supporting the possibility of a bullish trend in Ethereum.
The analyst reveals a rising wedge pattern in the Bitcoin dominance price chart on the weekly time frame. The BTC dominance breaks below the support trend line, increasing the chances of a new altcoin season.
With the confirmed downtrend in Bitcoin dominance, the next few weeks could witness a massive surge in the altcoin market cap.
Ethereum Price Rally Targets $4,617
From the technical analysis point of view, the Ethereum price trend in the weekly chart reveals a triangle breakout rally. Furthermore, the recent recovery completes a Rounding Bottom reversal, surpassing the neckline at the 78.60% Fibonacci level price of $3,817.
Source: Tradingview
However, the pullback of 7.65% this week marks a retest of this broken trendline and the Rounding Bottom pattern. With the ongoing recovery, the 100-week and 200-week Simple Moving Average lines are ready for a bullish crossover.
Furthermore, the MACD and Signal lines maintain a positive trend. As the Ethereum price is ready for a post-retest reversal of the broken trendline, the Fibonacci level speeds the next price target at $4,617.
Hence, the chances of Ethereum hitting a new all-time high have significantly increased with the growth in institutional demand, the chances of a new altcoin season, and the improving sentiments in the macro market with the Trump administration.
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