In the past 30 days, Ethereum’s (ETH) price has surged by 33%, fueling speculation about the cryptocurrency’s potential to hit new highs. While it seems unlikely as this month draws to a close, analysts’ Ethereum December prediction could bring in more gains for holders.

BeInCrypto explores these forecasts, uncovering the key drivers behind the bullish sentiment surrounding ETH.

Analyst Bullish on Ethereum, but Give Conditions

According to Juan Pellicer, Senior Researcher at IntoTheBlock, Ethereum’s December prediction could see the cryptocurrency hit a new all-time high. However, in his opinion, Pellicer said that this would only come to pass if ETH could break through $4,000.

Besides that, the researcher mentioned that ETH could closely follow Bitcoin’s performance in this case, indicating that large holders’ accumulation and retail participation could be key to the potential. 

“The outlook for Ethereum closely mirrors Bitcoin’s positive trajectory, with significant potential for an end-of-year rally that could gather even more momentum if it successfully breaks through the previous $4,000 ATH. Our on-chain analysis is looking at trends in accumulation by large holders, which would indicate spot buys from both institutional and retail investors,” Pellicer told BeInCrypto.

But as of this writing, Ethereum’s large holders’ netflow has decreased, suggesting that whales are no longer accumulating as much as they were some days back. If this continues, ETH’s price could find it challenging to reach $4,000 next month.

On the other hand, if these holders begin to accumulate again, this might change, and the Ethereum December prediction could end up being bullish.

For Brian Quinlivan, Lead Analyst at Santiment, one key metric to monitor is Ethereum’s funding rate on BitMex and Binance. The funding rate shows if longs (buyers) are dominating shorts (sellers) in the derivatives market.

When it is positive, longs have the upper hand. But if it is negative, shorts do. As of this writing, the funding rates on both exchanges are highly positive. This indicates that longs are dominant, and most traders expect ETH’s price to increase in December.

However, Quinlivan believes the metric needs to stay relatively neutral so that Ethereum’s price can catch BTC.

“But with the longs dominating the shorts on these top exchanges, it means that a significant climb here would be overcoming a lot of odds. Historically, we need funding rates to stay neutral or even lean toward shorting in order to justify future major rises,” the analyst told BeInCrypto.

Another analyst who spoke to BeInCrypto about ETH’s potential next month is Julio Moreno, Head of Research at CryptoQuant. Using the Market Value to Realized Value (MVRV) ratio, Moreno says ETH is approaching an undervalued state relative to BTC.

The MVRV ratio is a key metric that shows if an asset is undervalued or overpriced.

Based on the image above and historical data, Moreno suggests that ETH may soon replicate its price action from February 2020, a period that marked the beginning of its rise to an all-time high in 2021.

“Currently, the relative valuation of ETH against Bitcoin (violet line in the chart) is approaching extreme undervalued territory (green area). The last time that ETH was this undervalued against Bitcoin was back in February 2020.” Moreno said in the conversation with BeInCrypto.

ETH Price Prediction: 4,000 or More on the Table

From a technical perspective, Ethereum has formed a bull flag on the daily chart. The bull flag pattern features a sharp rise, often referred to as the “flagpole,” followed by a tight, rectangular consolidation phase known as the “flag.” 

This formation typically indicates an upcoming breakout, during which the price rests and gathers strength before making an upward move. As seen above, ETH’s price has broken out of the consolidation phase.

While it has faced resistance around $3,600, it is likely to bounce again. If this happens, Ethereum’s December prediction could see the value rise above $4,000. However, if the cryptocurrency faces selling pressure, the trend might change, and ETH could drop to $3,003.

Coinbase CEO Brian Armstrong and technology billionaire Elon Musk have accused prominent political figures, including Senator Elizabeth Warren and SEC Chair Gary Gensler, of orchestrating a “mass debanking” campaign targeting the technology and cryptocurrency sectors during the Biden administration.

Their remarks follow revelations about secretive actions that allegedly resulted in the closure of bank accounts for dozens of tech entrepreneurs without notice or recourse.

Crypto Leaders Strong Rebuke of the Biden Administration

In a post on X (formerly Twitter), Armstrong labeled the debanking incidents as “unethical and un-American.” He pointed fingers at Warren and Gensler, accusing them of attempting to “unlawfully kill” the cryptocurrency industry.

Brian Armstrong argued that such actions contributed to the Democratic Party’s loss in the recent election. The Coinbase executive cautions the party to distance itself from Warren if it seeks political recovery.

He also revealed that Coinbase is using Freedom of Information Act (FOIA) requests to uncover the full scope of the issue, raising questions about potential legal violations.

“We’re still collecting documents via FOIA requests, so hopefully the full story emerges of who was involved and whether they broke any laws. Warren and Gensler tried to unlawfully kill our entire industry, and it was a major factor in the Dems losing the election,” Armstrong stated.

Armstrong’s remarks amplified a controversy shared by Elon Musk, who was known for his advocacy of free speech and innovation. The SpaceX CEO referenced a Joe Rogan interview with Marc Andreessen, co-founder of Andreessen Horowitz.

“Did you know that 30 tech founders were secretly debanked?” Musk remarked.

In the interview, Andreessen alleged that 30 tech founders were “secretly debanked,” describing it as an exercise of “silent government power.” This raises attention to the lack of transparency and warns of broader implications for freedom and innovation.

Custodia Bank’s Caitlin Long Joins the Criticism

Caitlin Long, founder and CEO of Custodia Bank, also weighed in, sharing her personal experience with repeated debanking. Custodia, a pro-crypto bank, has faced regulatory hurdles, culminating in layoffs attributed to the Federal Reserve’s delays in granting the institution a master account. Long’s ongoing lawsuit against the Fed seeks to address these challenges, with oral arguments scheduled for January 21, 2025.

“Yes—debanked repeatedly, in my company’s case (Custodia Bank). Keep an eye on our pending lawsuit against the Fed. Oral argument is scheduled for Jan 21 (the day after Inauguration Day),” Long commented.

The allegations come amid broader concerns over regulatory overreach in the crypto space. Warren and Gensler have been vocal critics of the industry, and the SEC, under Gensler’s leadership, has pursued multiple enforcement actions against crypto firms. Critics argue these measures stifle innovation and disproportionately target emerging technologies.

Custodia Bank’s struggles, among others like Consensys, reflect the challenges facing crypto-friendly financial institutions. The fallout from these allegations could reshape the relationship between the tech sector and US policymakers.

Brian Armstrong’s assertion that these actions contributed to the Democrats’ electoral losses highlights the political risk of alienating the tech and crypto communities. Additionally, Long’s lawsuit could set a precedent for how courts address claims of regulatory overreach.

Bitcoin spot ETFs (exchange-traded funds) witnessed a landmark month in November, with net inflows surging to an unprecedented $6.2 billion. This financial instrument, which offers institutional investors indirect access to Bitcoin (BTC), broke the previous record set earlier this year.

The optimism driving this influx coincides with President-elect Donald Trump’s pro-crypto agenda, which has spurred investor confidence in digital assets and related financial products.

Political Winds Boost Bitcoin ETFs Past Key Milestones In November

Following the landmark approval of spot Bitcoin ETFs in January, the financial instruments have recorded a net $6.2 billion in combined netflows in November, according to data compiled by Bloomberg. With this, the US Bitcoin spot ETFs have breached the February peak of $6 Billion.

“Spot BTC ETFs set to break monthly inflow record… $6.2 billion so far in November. The previous high was $6 billion in February,” said Nate Geraci, president of The ETF Store.

Donald Trump’s electoral victory has been a critical catalyst for the record-breaking inflows. His administration has promised a favorable regulatory environment for cryptocurrencies, including reversing restrictive policies enacted during the Biden era.  

The announcement of plans to establish a strategic Bitcoin reserve and appoint crypto-friendly regulators has further bolstered market sentiment. These drove Bitcoin close to the $100,000 threshold.

This optimism extends to spot Bitcoin ETFs, which saw their largest single-day inflow of $1.38 billion immediately following the election. BlackRock, a leader in the space, recorded over $1 billion in a single day, reflecting the significant interest from institutional investors seeking exposure to Bitcoin through regulated avenues.

Beyond record inflows, Bitcoin ETFs have also witnessed rapid accumulation of holdings, approaching 1 million BTC collectively. Analysts project that by year-end, these ETFs could surpass the estimated holdings of Bitcoin’s creator, Satoshi Nakamoto. Such a milestone would solidify their dominance in the market.

BlackRock’s iShares Bitcoin Trust (IBIT) stood out with its record-breaking volumes, recently surpassing gold-based ETFs in market traction. This shift signals a growing preference for digital assets among traditional investors. Other ETFs, such as those from Fidelity and Bitwise, have also experienced notable inflows, further expanding Bitcoin’s reach in mainstream finance.

Trump’s Policies Pave Way for ETF Expansion

Trump’s administration is expected to unlock further opportunities for crypto-based financial products. Already, crypto markets have seen options trading for Bitcoin ETFs. Recent approvals by the Options Clearing Corporation (OCC) have paved the way for the launch of options trading for Bitcoin ETFs. These developments provided investors with an additional tool to hedge and speculate on Bitcoin price movements.

Matt Hougan, Chief Investment Officer at Bitwise, described the developments in the space as potential game-changers. Specifically, they would allow institutional investors to enter the crypto space with greater confidence. This trend aligns with the broader institutional adoption of Bitcoin as a strategic asset amid favorable regulatory signals.

“A pro-crypto regulatory environment will provide air cover for institutional investors who have long wanted to allocate to the space. It’s a game-changer,” Hougan posted on X.

With ETFs playing a pivotal role in Bitcoin’s adoption, their continued growth could sustain BTC’s upward trajectory. Predictions suggest Bitcoin could reach new all-time highs, with some models targeting $117,000 if the current momentum persists. At the time of writing, BTC is trading for $96,390, a modest 0.64% gain since Friday’s session opened.

Meanwhile, the record inflows into US Bitcoin spot ETFs in November reflect a convergence of political and regulatory events with investor sentiment. Trump’s pro-crypto stance has reignited enthusiasm among investors, driving both price and adoption milestones.

As these ETFs grow in significance, they are reshaping the playing field of Bitcoin investing, positioning the pioneer crypto for broader acceptance in the financial system.