Ethereum Price Analysis

Ethereum price has recoiled in the past few weeks despite positive news around exchange-traded funds (ETFs) and staking inflows.

As of Dec. 29, 2023, Ethereum (ETH) traded at $3,400, a decline of over 17.2% from its peak this month. This drop comes amid robust fundamentals for Ethereum.

Data from SoSoValue indicates that daily inflows surged by $47.7 million on Friday, with funds experiencing inflows for the last four consecutive days, despite two outflows in the past 25 days. The cumulative net inflows of these ETFs have exceeded $2.68 billion, resulting in total net assets of over $12.1 billion. Notably, the BlackRock Ethereum ETF has attracted significant funds, boasting $3.58 billion in total assets. Other institutions offering Ethereum funds include Grayscale, Fidelity, and Bitwise.

Meanwhile, IntoTheBlock data reveals increasing investor participation in staking ETH, with the total amount staked climbing to 55.18 million ETH. The staking market cap has risen to $114.95 billion, with an average reward rate of 3.06%. Staking allows Ethereum holders to delegate their tokens to help secure the network, earning transaction fees in return, which have seen a gradual uptick over recent years.

According to TokenTerminal, Ethereum generated over $2.4 billion in 2024, making it the second most profitable network in the industry, trailing only Tether.

Some analysts are optimistic about a potential rebound for Ethereum’s price. Notably, a popular analyst, TMV, projected that the coin could recover after completing the fourth stage of the Elliot Wave pattern, which outlines five phases that assets go through. The fourth phase is typically bearish, whereas the fifth is often bullish.