Ethereum News Today: Ethereum's 2025 Bull Case: Upgrades, Inflows, and a Dormant Wallet's $6M Move

Ethereum's price trajectory is showing signs of a familiar bullish structure as the cryptocurrency enters 2025, driven by surging institutional demand, on-chain activity, and strategic technical developments. Recent data indicates that Ethereum (ETH) has stabilized above the critical $4,000 level, supported by a rebound in spot ETF inflows and growing retail and institutional confidence. US-listed Ethereum spot ETFs recorded $134 million in inflows on Monday, pushing cumulative net inflows to $14.49 billion, with total assets under management reaching $28.35 billion, according to an FXStreet report. This momentum follows three consecutive days of outflows, signaling a potential reversal in risk appetite.

The resurgence aligns with broader market trends, including a $9.6 billion inflow into Ethereum ETFs in Q3 2025—the highest quarterly total on record—surpassing even Bitcoin's ETF performance, according to a TradingView report. Analysts attribute this shift to Ethereum's expanding utility, including layer-2 scaling solutions and tokenization adoption, which are enhancing network activity and long-term value propositions. Meanwhile, a rare on-chain event has captured market attention: an Ethereum ICO participant, identified as wallet 0x3690, transferred 1,500 ETH (worth $6 million) to Kraken after nearly eight years of dormancy. The wallet originally received 20,000 ETH in 2015 for $6,200, now valued at $80 million, according to a newsBTC report. Such movements from early holders often signal strategic repositioning and renewed confidence in Ethereum's fundamentals.

Technical indicators further reinforce a bullish outlook. Ethereum's price has stabilized near $3,993, with the 50-day exponential moving average (EMA) acting as both support and resistance, according to a TradingView analysis. A break above $4,200 could open the path to $4,500–$4,700, while a drop below $3,800 might trigger deeper retracements. On the macro side, the Federal Reserve's dovish policy trajectory—projected to cut rates by 100 basis points through 2026—creates favorable liquidity conditions for risk assets like Ethereum, per a PowerDrill forecast. Additionally, a $780 million withdrawal of ETH from exchanges over 48 hours suggests accumulation by long-term holders, historically a precursor to market advances.

Upcoming upgrades also position Ethereum for growth. Developers have finalized December 3 as the mainnet launch date for the Fusaka upgrade, which includes 12 Ethereum Improvement Proposals (EIPs) aimed at enhancing scalability and security, particularly for Layer 2 networks, according to an FXStreet forecast. The most anticipated EIP, EIP-7594 (PeerDAS), will allow developers to validate Layer 2 transactions using a subset of blob data, reducing computational overhead. Post-Fusaka, blob capacity limits will expand in two phases, further supporting throughput. These upgrades, coupled with institutional adoption of Ethereum staking yields—projected to reach 4–6% annually—could drive sustained demand.

The on-chain economy's growth underscores Ethereum's evolving role in decentralized finance (DeFi). In H1 2025, the on-chain economy generated $9.7 billion in fees, a 41% year-over-year increase, with DeFi accounting for 63% of total fees, according to a Yahoo Finance report. Protocols like Aave and Morpho are expanding lending markets, while Layer 2s such as Base and Arbitrum dominate transaction volumes. This shift toward settlement-layer economics highlights Ethereum's transition from a direct usage model to one driven by yield and utility.

As Ethereum navigates this pivotal phase, the interplay of institutional inflows, on-chain accumulation, and technical upgrades suggests a strong foundation for 2025. However, short-term volatility remains a risk, with bulls needing to defend key support levels and maintain positive ETF inflow momentum to solidify the bullish case, as noted in the FXStreet coverage.