Ethereum ETF Products Recover Following a Boost from BlackRock and Fidelity

Ethereum ETF products have registered a huge recovery following a boost from BlackRock and Fidelity. Through their respective Ethereum ETFs, the two asset management firms recorded inflows worth up to $130 million on December 23.

BlackRock and Fidelity played a key role in driving up the price of Ethereum. Through their respective exchange-traded funds (ETFs), the two asset management firms recorded inflows of up to $130 million on December 23.

Specifically, BlackRock's ETHA ETF experienced a 1.3% inflow, bringing its cumulative inflows to $89.5 million. The fund's net assets amounted to $3.43 billion, representing 0.9% of Ethereum's total supply.

Meanwhile, Fidelity's FETH ETF saw $46.4 million in cumulative inflows.

Together, these inflows contributed significantly to the overall bounce-back observed in Ethereum ETF products.

As a result of the inflows recorded on Monday, the total inflows for the funds since their launch are now pushing over $2.46 billion.

In December alone, the inflows reached a record $400 million over an eight-day period. This figure marks an all-time high (ATH) for the offering, which began trading in July 2024.

Ethereum has shown great resilience in the broader market correction in the last few weeks.

Despite the bearish conditions, important technical validation has managed to help keep Ethereum relatively stable.

While other cryptocurrencies are falling sharply, Ethereum has held its support around the $3,500 level.

At the time of writing, ETH's price was trading at $3,511.66, up 5.27% in the last 24 hours.

The coin is gaining traction among investors as it accumulates over 20 million ETH, signaling long-term confidence in the cryptocurrency.

The trend of this accumulation signals sharp and persistent upward growth. It is also an indication of aggressive buying action.

Some analysts have observed a bullish inverse head and shoulders pattern, pointing to a potential breakout. These analysts anticipate a possible rally to $6,000.

Based on historical trends, the first few months of the coming year could be pivotal for ETH's price.

With persistent fund inflow, BlackRock and Fidelity may catalyze Ethereum in the push toward breaking its previous ATH.

In the meantime, the coin shows signs of a supply squeeze, as there is a large concentration of ETH in wallets.

With most of the recent buyers HODLing, it means that fewer coins will flow into circulation each day.

This supply shock is likely to fuel the next price rally for Ethereum as it might fuel intense price pressure.

Also, more institutional investors are entering the market, suggesting their outlook on the coin has changed.

Moreover, the broader crypto market will change with Donald Trump entering the office as US President next month. Already, these investors are showing faith in Ethereum's long-term potential.

Senior Bloomberg ETF analyst Eric Balchunas believes the future generally looks bright For Ethereum funds and related products.