Ethereum traded at $3,100.98 at the time of writing, posting a 5.80% gain over the past seven days. The recent price recovery followed a volatile end to 2025, when ETH briefly slipped below the $3,000 level. Since then, trading activity has increased, supported by strong exchange flows and sustained demand from spot exchange-traded funds. Source: Coincodex Market participants have closely tracked these shifts, as capital movement patterns often reflect changes in short-term positioning and liquidity conditions. What triggered this sudden change in behavior? Binance Records $960M Ethereum Inflow in December Data from CryptoQuant showed Ethereum recorded a net inflow of $960 million to Binance in December 2025. This figure marked the largest monthly inflow to the exchange since July and ended a multi-month stretch of declining or negative net flows. From July through November, Ethereum consistently saw more withdrawals than deposits, a trend that often aligned with off-exchange holding strategies. Source: CryptoQuant December’s reversal signaled a notable change. Traders transferred large volumes of ETH onto Binance, increasing available liquidity on the exchange. Such movements often coincide with heightened trading activity, portfolio rebalancing, or preparation for market volatility. The scale of the inflow placed December well above recent monthly averages, highlighting a sharp shift in exchange-related behavior. Spot Ethereum ETFs Attract Fresh Capital Alongside exchange flows, spot Ethereum ETFs recorded strong inflows at the start of 2026. According to SoSoValue data, Ethereum spot ETFs posted a combined net inflow of $174 million on January 2. Grayscale’s Ethereum Trust ETF led daily inflows with $53.7 million, despite carrying a cumulative historical net outflow of $4.996 billion. The Grayscale Ethereum Mini Trust ETF followed closely, attracting $50 million in new capital and pushing its cumulative inflows to $1.538 billion. Total net assets held across Ethereum spot ETFs reached $19.046 billion. These products now account for an ETF net asset ratio of 5.06% relative to Ethereum’s total market capitalization. Cumulative historical net inflows across all Ethereum spot ETFs have climbed to $12.502 billion, underlining sustained institutional participation. Network Upgrades and Technical Signals Shape Market Focus Ethereum’s investment flows coincided with ongoing attention around network upgrades and technical indicators. Developers have scheduled the Pectra and Fusaka upgrades to improve scalability and reduce transaction fees. These upgrades have remained a central theme for investors tracking Ethereum’s long-term network development. On the technical side, ETH reclaimed the $3,000 level as the relative strength index flashed a buy signal. Market data showed $3,250 as a key technical threshold, often cited as a level that could confirm a broader trend shift if breached. Market commentary has also referenced long-term price projections, including Tom Lee’s previously stated $7,000 to $9,000 target range for 2026, which continues to circulate in market discussions. Source: X Ethereum’s combination of exchange inflows , ETF demand, and technical recovery has placed the asset back at the center of market focus. Will these signals define the next phase of trading activity? The coming weeks will likely offer clearer direction.
