After suffering significant losses over the past week, the cryptocurrency market has seen a rally in the last 24 hours, with Ethereum (ETH), BNB, and Solana (SOL) advancing. Bitcoin (BTC) briefly surged to $96,000, but a lack of sustained upward momentum caused a quick pullback, with the price settling around $94,000 during the early European session on Tuesday, December 24.
While Bitcoin has led the market this year, several altcoins have shown stronger gains, with investors now anticipating a significant rally in the first half of 2025. Bitcoin has performed impressively, supported by growing institutional adoption, but its returns have slowed, allowing some altcoins to catch up.
Ethereum-Focused ETFs See Large Cash Flows
Ethereum-focused ETFs in the United States have seen significant cash flows, indicating strong investor confidence in Ethereum. On Monday, Ethereum-focused ETFs in the US saw net cash inflows of around $130 million, bringing their total to $2.46 billion.
BlackRock’s ETHA fund led the way with net cash inflows of over $89 million, now holding over 1 million ether. Fidelity’s FETH fund also saw net cash inflows of $46 million, bringing its assets under management to over $1.6 billion.
Bitcoin-focused ETFs See Outflows
On the other hand, US-based bitcoin ETFs, excluding BlackRock’s IBIT, saw net cash outflows on Monday. Over the past three days, US-based bitcoin ETFs have seen cumulative outflows of over $1.1 billion, indicating a shift in investor interest. This rise in the CMF reflects a rebound in buying power over selling, which further validates the potential for a ETH price rally.
ETH/BTC Forms Symmetrical Triangle Signaling Potential Upside
The ETH/BTC pair has formed a symmetrical triangle pattern, signaling a high-probability setup for a potential upside move. The price is currently oscillating between converging support and resistance levels, and appears to be near the support level. This situation could lead to a major breakout if the buying momentum continues to increase.
This formation on the monthly timeframe enhances the possibility of an upside breakout as traders gauge market sentiment. It is worth noting that if ETH makes an upside move, there are three pivotal levels to watch: 0.0540, 0.0859, and 0.1202. Each of these levels signals a potential upside move in ETH against BTC.
As ETH/BTC approaches these levels, we may see a similar upside move in ETH/USDT, which is currently at $3,200. A successful upside move could enable ETH to reclaim its previous highs near $4,000.
Recent market trends suggest that sellers are gradually losing their grip, as evidenced by the decline in the current Relative Strength Index (RSI), which is now at 32.19. The RSI approaching the oversold zone indicates that bearish momentum is faltering, which could pave the way for renewed buying interest.
Furthermore, when the RSI approaches the 30 threshold, it usually indicates a decrease in selling activity, indicating an increasing possibility of a price rally.
The decrease in selling pressure is confirmed by the Chaikin Money Flow (CMF), which is trending higher, indicating a shift towards positive territory. This rise in the CMF reflects a rebound in buying power over selling, which further validates the potential for a ETH price rally.
As the potential for an altcoin season grows, crypto investors should focus on DeFi tokens that solve real-world problems, community-driven meme coins, well-funded layer-2 solutions, and AI-focused projects. These areas are expected to play a major role in the upcoming major crypto rally.
Bitcoin ETFs See Mixed Market Flows
Bitcoin ETFs recorded inflows of $226.6 million as of December 23, 2024, bringing total net inflows since launch to $35.83 billion. These funds now hold 5.7% of the total Bitcoin supply, valued at $105.08 billion.
Among the major Bitcoin ETFs, BlackRock’s iShares Bitcoin Trust (IBIT) recorded a modest net inflow of 0.20% as of December 23. This brought total inflows to $31.7 million, with total net assets of $51.31 billion, of which 2.78% is invested in Bitcoin.
Grayscale’s Bitcoin Trust (GBTC), on the other hand, saw a slight decline of 0.2% in its assets, resulting in cumulative outflows of $38.4 million. Its current net assets are estimated at $19.27 billion, with 1.04% allocated to Bitcoin.
Grayscale’s other product, the Bitcoin mini trust (BTC), saw a slight decline of 0.1%, bringing its net assets to $3.56 billion, with just 0.2% in Bitcoin.
Fidelity’s Bitcoin Wise Origin fund (FBTC) saw a small inflow of 0.1% but saw a cumulative outflow of $146 million. The fund currently holds $18.86 billion in assets, with 1.0% in Bitcoin.
ARK Invest and 21Shares’ ARKB fund saw a 0.3% inflow, though it still had a cumulative outflow of $15.8 million. It manages $4.36 billion in assets, with 0.2% invested in Bitcoin. This rise in the CMF reflects a rebound in buying power over selling, which further validates the potential for a ETH price rally.
Finally, Bitwise’s Bitcoin ETF (BITB) registered an inflow of 0.2% but faced a cumulative outflow of $23.8 million. The fund currently has net assets of $3.80 billion, of which 0.2% is in Bitcoin.
