Ethereum (ETH) May Outperform Bitcoin (BTC) in the Short Term as ETF Inflows Continue

Fidelity's Bitcoin Fund and the ARK 21Shares Bitcoin ETF contributed to the selling pressure, losing $83.2 million and $75 million, respectively.

Bitcoin price analysis shows that the world’s largest cryptocurrency is experiencing selling pressure, with the Fidelity’s Bitcoin Fund and the ARK 21Shares Bitcoin ETF both seeing outflows. The Bitwise Bitcoin ETF, however, saw inflows of $8.5 million.

The Fidelity’s Bitcoin Fund saw outflows of $83.2 million during the week, while the ARK 21Shares Bitcoin ETF experienced outflows of $75 million.

This follows several weeks of outflows from Bitcoin ETFs, which have now totaled over $500 million.

The sustained outflows from Bitcoin ETFs, despite the recent price rally, highlight a broader trend of increasing preference for Ethereum over Bitcoin among institutional investors.

A technical analysis of Ethereum and Bitcoin price charts reveals contrasting setups that could influence price movements in the coming days.

The Ethereum price daily chart showcases a crucial technical setup that may bolster the bullish narrative. As ETH price hovers at $3,488, it is positioned just above its 50-day moving average, currently at $3,480. This indicates that buyers are defending this level, which could pave the way for further upside if it holds.

Bitcoin price, on the other hand, teeters just above its 50-day moving average, currently at $94,642. A decisive breach below this level could trigger further liquidations, pushing BTC price toward the $93,000 zone. Conversely, a bounce from this level may provide short-term respite, although the persistent ETF outflows remain a point of concern.

With Christmas trading volumes set to be significantly lower, market moves are likely to be more volatile. The lack of liquidity can exaggerate price swings, amplifying both gains and losses. If Ethereum continues to attract inflows during this period, it could propel ETH price closer to the $3,600 round number.

As we look ahead to 2025, Ethereum’s ETF inflows and relative price stability suggest it may continue to outperform Bitcoin in the near term. The ETH/BTC ratio, currently at 0.035, highlights Ethereum’s growing strength against Bitcoin.

This trend is likely to continue into January, driven by anticipation of upcoming network upgrades and institutional interest in Ethereum, which could lead to ETH price outpacing BTC price in the coming weeks.