Ethereum's price on December 29, 2024, was $3,363.36. This is considerably lower than its highest price earlier this month, more than 20%
After a brief rally, the price of Ethereum (ETH) has fallen again. However, strong inflows into Ethereum spot ETFs indicate continued investor confidence in the second-largest cryptocurrency.
According to data from Spot On Chain, the week of December 23-27, 2024, saw interesting trends in cryptocurrency ETFs. Both Bitcoin and Ethereum ETFs saw inflows, while Bitcoin ETFs also experienced outflows.
While Bitcoin ETFs saw inflows on only one day of the four trading days, money exited on three days. Notably, BlackRock’s IBIT ETF saw the largest outflow since its launch. It saw about $188.7 million flow out of the country. This could be a sign of concern for Bitcoin in the short term. However, it could also indicate a broader market trend, rather than any fundamental weakness with Bitcoin itself.
On the other hand, there were inflows into Ethereum ETFs throughout the period. Of the four trading days of the week, there were inflows into Ethereum’s ETFs on each day. In fact, there were no outflows on three of those days at all. This indicates strong demand for Ethereum-based investment products, despite the drop in ETH’s price.
As of December 29, 2024, the price of Ethereum was $3,363.36. This is considerably lower than its highest price earlier this month, by more than 20%. However, this comes as Ethereum ETFs have performed positively. It is likely that this drop in price is due to market corrections. However, the fundamentals of Ethereum remain strong, with high investor confidence.
Moreover, despite the falling price of Ethereum, its market position remains strong. Notably, Ethereum is a key component of smart contracts, decentralized finance (DeFi) and blockchain innovation. This, coupled with the above factors, has continued to attract long-term investors. The price may be temporary, but there is more potential for Ethereum.
Meanwhile, investor sentiment might be shifting away from Bitcoin on the other hand, as suggested by ETF outflows. While Bitcoin still remains the largest cryptocurrency by market capitalization, the inflows into Ethereum ETFs are indicative of a growing adoption of Ethereum. It could be a sign of a changing landscape in how cryptocurrency investors view the best potential for growth.
In conclusion, the price of Ethereum has dropped recently, but investor confidence in Ethereum ETFs remains strong. On the other hand, Bitcoin faces challenges, with ETF outflows. More likely, investors will be looking at the long-term potential of Ethereum, that continues to show strong fundamentals and growth within the blockchain space. The coming weeks may reveal more about the future direction of both Bitcoin and Ethereum.
