Ethereum’s price drops as spot ETF and staking inflows increase

Ethereum has seen a significant price retreat recently, dropping over 17.2% from its peak this month, trading at $3,400 as of December 29. Despite this decline, Ethereum continues to demonstrate strong fundamentals, with positive inflows into exchange-traded funds (ETFs) and staking.

The inflows into Ethereum ETFs have been particularly strong, with daily inflows reaching $47.7 million on December 29, marking four consecutive days of inflows. The total net assets of Ethereum ETFs have surpassed $12.1 billion, with the BlackRock Ethereum ETF leading the charge, now holding $3.58 billion in assets. Other funds from Grayscale, Fidelity, and Bitwise have also contributed to this positive trend.

Additionally, staking activity is rising, with a cumulative total of 55.18 million ETH staked, and the staking market capitalization has grown to $114.95 billion. The average staking reward is 3.06%. Staking allows Ethereum holders to delegate their tokens to help secure the network and earn fees, which have been increasing in recent years. Ethereum’s network generated over $2.4 billion in 2024, making it the second most profitable blockchain after Tether.

Some analysts are optimistic about Ethereum’s price recovery. A well-known analyst, TMV, predicts a rebound after Ethereum completes the fourth wave of the Elliott Wave cycle, a technical pattern that suggests the price may rise during the fifth wave, which is typically bullish.

Ethereum Price Analysis

On the daily chart, Ethereum has encountered resistance around $4,000, as indicated by the Murrey Math Lines. The price has recently dipped below the strong pivot point of $3,437 but remains above the 100-day moving average. The accumulation/distribution indicator has risen, suggesting buying activity. Technical analysis, including the Elliott Wave pattern, indicates that a potential rebound is possible. If this occurs, the next target for Ethereum could be $3,750, which aligns with the upper resistance level of the Murrey Math Lines.