Ethereum Dominates Crypto ETF : A December Rally Looms

In a context where Bitcoin’s dominance is wavering, Ethereum is positioning itself as the protagonist of a bullish dynamic. For the first time, Ethereum-related exchange-traded funds (ETFs) have surpassed the daily inflows of Bitcoin ETFs. This is drawing the attention of institutional investors. These signals, combined with solid technical and fundamental indicators, suggest a promising December for the world’s second-largest cryptocurrency.

Historic Records for Ethereum ETF

Institutional investors seem to have changed their view on Ethereum. According to the latest data, Ethereum ETFs recorded a historic inflow of $332.9 million on November 29, 2024, an unprecedented figure that surpassed Bitcoin ETFs, which attracted $320 million during the same period. This is the first time Ethereum has outpaced Bitcoin in terms of inflows. Such performance occurs as Ethereum ETFs have been available for far less time than those of Bitcoin, reinforcing the impression of growing interest in this asset.

This trend is notably explained by the decline of Bitcoin’s dominance in the global crypto market, a drop that seems to open opportunities for Ethereum. Concurrently, technical analysis supports this dynamic. Moreover, Ethereum has recently crossed a long-term descending resistance line and, in the process, validated a “bull flag” which indicates significant bullish potential. These combined factors reinforce the hypothesis of an imminent rally.

Fundamental Perspectives: Increased Investor Confidence

Beyond the performance of ETFs, other indicators confirm Ethereum’s current strength. Data on Open Interests show a historic peak at $24.08 billion, with increased demand in derivative markets. This interest, often interpreted as a signal of investor confidence, accompanies a notable increase in Ethereum reserves on exchange platforms. In one month, these reserves have increased by 750,000 ETH, reaching a total of 19.72 million ETH, a level not seen since April 2024.

This rise in reserves reflects a sentiment of reducing selling pressure in the market. “For the first time in two years, Ethereum is experiencing two consecutive months of positive inflows on exchanges,” states CryptoQuant. This dynamic could, according to some observers, propel the asset to new heights beyond $4,000 in the coming weeks.

As Ethereum gains traction, several implications emerge for the entire crypto market. The growing interest of institutions in its ETFs could signify a diversification of institutional portfolios, which were once largely centered on Bitcoin. This shift also reflects an increased perception of the utility of Ethereum, particularly due to its central role in DeFi and NFT innovations. However, investors should remain cautious in the face of the intrinsic volatility of crypto markets. While December looks promising for Ethereum, the sustainability of this trend will depend on numerous factors, including regulatory developments and market movements. One thing is certain: Ethereum, more than ever, is worth watching.