Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
Institutional demand for Ethereum (ETH) is reportedly surging, with Ethereum Exchange-Traded Funds (ETFs) outperforming Bitcoin (BTC) ETFs in quarterly inflows for the first time, signaling a significant shift in investment strategy. This institutional rotation, coupled with renewed accumulation by large holders, underpins a bullish forecast from Coinpedia, which predicts ETH could reach $5,600, representing a nearly 40% gain, by the end of 2025.
Institutional Rotation Redefines ETF Landscape
The global cryptocurrency market, valued at $3.76 trillion, sees Bitcoin and Ethereum dominating over 70% of its total capitalization. Recent data from the third quarter of 2025 reveals Ethereum ETFs attracted $9 billion in inflows, surpassing Bitcoin ETFs, which saw inflows decline to $8 billion in the same period.
This marks a pivotal moment, as it is the first quarter ETH ETFs have outpaced BTC ETFs in demand. XWIN Research Japan has highlighted this trend as a significant shift in institutional investment strategy, noting that Ethereum fund holdings reportedly doubled in 2025, reaching 6.8 million ETH by October.
Ethereum Gains Ground Amid Bitcoin’s ETF Slowdown
While Bitcoin ETFs dominated early 2025, their inflows have since become more volatile. The growing momentum behind Ethereum ETFs suggests a structural change, with investors increasingly prioritizing assets that offer yield through staking and exposure to on-chain innovation.
This indicates a move by professional investors from simple store-of-value strategies towards protocols with greater utility and income potential. If this pattern persists into Q4 2025, Ethereum could redefine portfolio allocations across the digital asset market.
Whale Accumulation Returns
Beyond ETF inflows, on-chain data for Ethereum points to a resurgence in accumulation by large holders, often referred to as whales and sharks. Wallets holding between 100 and 10,000 ETH accumulated approximately 218,470 ETH in the past week, following an earlier period where about 1.36 million ETH was offloaded between October 5 and 16.
This rebound in accumulation is historically seen as a precursor to multi-month rallies, signaling recovering confidence among significant market participants. These participants tend to buy during periods of structural lows, according to the analysis.
Technical Setup
Technically, Ethereum’s price chart supports the bullish sentiment, according to Coinpedia’s analysis. ETH currently trades near $3,950, maintaining strong support within the $3,670 to $3,870 range, which has transitioned from resistance to a key support zone in Q4 2025.
This support level also aligns with the midline of a long-term ascending channel that has guided ETH’s broader uptrend since 2023. If this support continues to hold, Coinpedia anticipates a move toward $5,600, which coincides with the upper channel resistance, implying nearly 40% upside before the year’s end.
Market Outlook
The confluence of strong institutional interest, evidenced by surging ETF inflows and fund holdings, alongside renewed whale accumulation and favorable technical indicators, paints a bullish picture for Ethereum’s trajectory. If these patterns persist, analysts suggest Ethereum could significantly redefine digital asset portfolio allocations and potentially reach $5,600 by the end of 2025.
