- Ethereum’s long-term holder base grows to 75%, reflecting increased investor confidence throughout 2024.
- Spot Ether ETFs see massive inflows, doubling to $2.1 billion in December, signaling strong market interest.
Ethereum has seen a notable uptick in its retention rate among investors, with a significant increase in long-term holdings. According to data from IntoTheBlock, Ethereum’s long-term holder base expanded from 59% at the start of 2024 to 75% by the year’s end.
This contrasts sharply with Bitcoin, where the proportion of long-term holders decreased from 70% to 62.3% during the same period.
The rise in Ethereum’s long-term investments is linked to several key factors. For instance, the total money flowing into spot Ether Exchange-Traded Funds (ETFs) rose dramatically, doubling from $1 billion in November to $2.1 billion by December’s close.
This chart shows the percentage of long-term Bitcoin and Ether holders over the past year.
While the share of long-term Bitcoin decreased, the percentage of long-term ETH holders climbed, surpassing that of Bitcoin early in the year. pic.twitter.com/F7ghaSq66T
— IntoTheBlock (@intotheblock) December 29, 2024
Adjustments in the regulatory enhancements in the ETFs’ staking options also played a role in bolstering investor confidence in Ethereum.
In December, Bitcoin experienced a notable decline, with its price dropping from a high of $106,000 to $93,000. This drop was noted by Gert Van Lagen, a technical analyst, who attributed it to some long-term holders selling off their stakes amidst a peak in market excitement.
$BTC [1W] – Bitcoin is blowing off as expected with Long-term holders reaching Euphoria.
The gravity of the Re-accumulation pattern has proven to be transcended.
With an estimated 2.5 months before a recession begins to take hold, $BTC is on track to surpass $200k soon. pic.twitter.com/qMGFvnWxbU
— Gert van Lagen (@GertvanLagen) December 16, 2024
Despite this setback, forecasts suggest that Bitcoin’s value might reach or exceed $200,000 soon.
Continuing with the ETH reports in ETHNews, the first quarter of 2025 is anticipated to be promising for Ethereum, based on past performance following U.S. elections and Bitcoin halvings. Notably, Ethereum saw substantial gains in the first quarters of 2017 and 2021, which significantly outperformed Bitcoin during those periods.
Don’t bet against Q1 2025 pic.twitter.com/LM1DWEmS3h
— Quinten | 048.eth (@QuintenFrancois) December 29, 2024
Expectations are high for Ether ETFs, which are projected to attract new investments, potentially totaling over $50 billion, amid favorable regulatory changes expected under the current U.S. administration.
22 of the last 24 trading days have seen positive inflows for the ETH ETFs which has resulted in a net inflow of +$2.66 billion.
Prediction: the ETH ETFs will see at least +$50 billion worth of net inflows in 2025.
— sassal.eth/acc 🦇🔊 (@sassal0x) December 28, 2024
Despite general optimism, some analysts exercise caution. Markus Thielen, from 10x Research, suggests that the tougher macroeconomic conditions foreseen for 2025 might temper the growth prospects for Ethereum and Bitcoin alike.
The Federal Reserve’s recent decision indicates fewer rate cuts than previously anticipated, which could lead to a less favorable environment for these digital assets. Thielen predicts that while Bitcoin might stabilize between $125,000 and $160,000, Ethereum could face challenges in reaching new highs under these conditions.
The current price of Ethereum (ETH) is $3,394.10 USD, showing a positive trend with a 1.34% increase recently. Based on technical analysis of its price charts, Ethereum appears to be maintaining a stable upward momentum.
Analysis
Ethereum is currently testing a resistance level at $3,500 USD, which has acted as a significant barrier in recent sessions. On the downside, there is strong support around $3,200 USD, which has provided stability and prevented further declines.
Prediction
If Ethereum manages to break through the $3,500 resistance level, it is likely to test $3,800 USD in the coming days. This scenario assumes the support at $3,200 USD remains intact and broader market conditions do not deteriorate.
