Ethereum (ETH) has experienced a recent price retreat, dropping by over 17.2% from its peak in December. Despite this decline, Ethereum has maintained strong fundamentals, with positive inflows from exchange-traded funds (ETFs) and an increase in staking activity. Data from SoSoValue shows a significant increase in daily inflows to ETH ETFs, with the cumulative net inflows surpassing $2.68 billion. The BlackRock Ethereum ETF leads the way with the highest inflows, totaling $3.58 billion. Other prominent firms like Grayscale, Fidelity, and Bitwise also offer ETH funds, contributing to the overall growth of the market.
On the staking front, more investors are participating in securing the Ethereum network by staking their tokens. The cumulative ETH sent to staking has risen to 55.18 million, with a staking market cap of $114.95 billion and an average reward rate of 3.06%. Staking has become a popular way for ETH holders to earn rewards while supporting the network. TokenTerminal data shows that Ethereum generated over $2.4 billion in 2024, making it one of the most profitable networks in the industry, second only to Tether.
Despite the recent price decline, some analysts remain optimistic about Ethereum’s potential for a rebound. One prominent analyst, TMV, predicts that Ethereum could bounce back after completing the fourth section of the Elliot Wave pattern, a technical analysis tool that identifies five stages assets go through. The fourth wave is typically bearish, while the fifth wave tends to be bullish. The current price analysis indicates that ETH has retreated from $4,000 but remains above the 100-day moving average. The accumulation/distribution indicator has also risen, signaling that investors are buying and supporting the price.
Looking ahead, technical indicators, including the Elliot Wave pattern, suggest that Ethereum could bounce back in the coming weeks. If this scenario unfolds, the next target for ETH price will be $3,750, which represents the ultimate resistance point of the Murrey Math Lines. With positive fundamentals, strong inflows from ETFs, and increased staking activity, Ethereum is poised to regain its momentum and potentially reach new highs in the near term. Investors are closely monitoring the market dynamics and technical signals to gauge the next move for this leading cryptocurrency.
