With a fresh recovery wave, Ethereum targets a new rally as the ETF inflows mark the 12th consecutive positive day.
As Bitcoin BTC $98 464 24h volatility: 0.8% Market cap: $1.95 T Vol. 24h: $117.13 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 $3 723 24h volatility: 0.6% Market cap: $447.50 B Vol. 24h: $55.70 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.
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.
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.
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.
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.
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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Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
