Daily Crypto Signals: Ethereum ETF Inflows Signal Potential Rally, XRP Faces Deepening Bearish Pressure
Ethereum is showing early signs of institutional demand recovery with spot ETF inflows rising 28% since late November, while XRP continues
Quick overview
- Ethereum is experiencing a recovery in institutional demand, with spot ETF inflows increasing by 28% since late November.
- XRP is facing significant challenges, including declining funding rates and reduced ecosystem activity, leading to a drop in investor interest.
- Norway's central bank has decided against pursuing a central bank digital currency for now, citing the adequacy of the current payment system.
- HIVE Digital Technologies has made history by becoming the first Bitcoin and AI infrastructure company to list on a Latin American stock platform.
Ethereum ETH/USD is showing early signs of institutional demand recovery with spot ETF inflows rising 28% since late November, while XRP XRP/USD continues to face mounting challenges as its funding rates hit two-month lows and ecosystem activity declines sharply.
Crypto Market Developments
This week, the cryptocurrency market sent out contradictory signals as big digital assets dealt with different levels of institutional interest and new rules. HIVE Digital Technologies, a Bitcoin BTC/USD miner, listed on the Colombian Stock platform under the ticker HIVECO. This was the first time a Bitcoin and AI infrastructure company traded openly on a Latin American platform. The listing gives investors in the Andean market system, which links Colombia, Peru, and Chile, a way to get in.
In regulatory news, Norway’s central bank, Norges Bank, said it would not pursue a central bank digital currency at this time because the country’s payment system is already quite good. Ida Wolden Bache, the governor, said that a CBDC is not needed right now, but the bank is ready to make one if it needs to in the future to keep the payment system safe and efficient.
In the meantime, the Office of the Comptroller of the Currency issued early results showing that nine big US banks, such as JPMorgan Chase, Bank of America, and Citibank, limited financial services to the cryptocurrency industry from 2020 to 2023. Before offering services to crypto-related enterprises, the banks put in place rules that required more assessments and approvals, typically citing concerns about financial crime. Comptroller Jonathan Gould said these practices were bad uses of charters and market power given by the government.
Ethereum Shows Promise Amid ETF Recovery
Ethereum’s price has cooled off since it was turned down at the $3,650 to $3,350 supply zone. The cryptocurrency is now trading close to $3,200. The rejection happened at the 200-day exponential moving average, which made it hard for spot exchange-traded funds to move up just as they started to show signs of recovery.
Glassnode’s data shows that location After weeks of outflows, ETH ETFs are starting to show signs of life. Since November 21, total net ETF assets have gone up from $16.8 billion to $21.5 billion, which is a 28% gain. This recovery is still small compared to the $32 billion peak set in early October, but it could mean that institutional conviction is slowly coming back as the year comes to a conclusion.
CryptoQuant data shows that the market is changing in a big way. The net taker volume has gone from a record low of negative $500 million in October to negative $138 million now. This recovery, even though it’s still negative, shows that aggressive sellers who were in charge during the September-October slump are losing steam. The 30-day moving average of net taker volume is going up, precisely like it did in early 2025, right before Ethereum’s price tripled to new all-time highs.
Ethereum is currently testing the support zone between $3,100 and $3,180 on shorter timeframes. If bulls keep control, this area might become a demand zone. If the market is positive, staying at this level might lead to a bounce back toward the 200-day EMA. If the price breaks over $3,450, it could open the way for a move back toward the $3,900 resistance level. But if the price breaks below the support line of the ascending channel, it might confirm a bearish trend and target the $3,000 barrier again. Hyblock’s derivatives data shows that financing rates are somewhat positive and there isn’t a lot of extreme positioning. This suggests that the market is still at a structural crossroads, waiting for confirmation of direction.
XRP Faces Mounting Pressure
After being turned down at $2.18, XRP dropped sharply, losing 9% of its value in just two days. It fell below the $2 mark, which is critical for the mind. This drop caused problems in the derivatives markets, which pushed the funding rate on XRP permanent futures down to negative 20%, the lowest level since the meltdown on October 10. These very low financing rates show that short sellers are paying long holders to keep their holdings, which means that there is almost no demand for bullish bets.
During flash crashes, very low funding rates can sometimes happen before reversals. However, in this case, it seems different because it is happening during a long corrective phase instead of a quick panic. The total amount of open interest in XRP futures has stayed at $2.8 billion, the same as last week and below the $3.2 billion level recorded in late November. This suggests that bearish are not willing to take on more risk after XRP fell 45% from its July peak of $3.66.
Less activity in US-listed XRP ETFs has made institutions less interested. Daily trading volumes seldom go beyond $30 million, and assets under management are locked at $3.1 billion. It’s even more worrying for XRP holders that people are losing interest in the XRP Ledger itself. The total amount of money locked up on the XRP Ledger is now at its lowest point in 2025, at just $68 million. This is a big difference from the Stellar blockchain’s $176 million, even though Stellar has a far smaller market valuation.
The Ripple-backed stablecoin RLUSD brings attention to these infrastructural issues. It has issued more than $1 billion on Ethereum, but only $235 million on the XRP Ledger. This preference for Ethereum makes XRP’s native blockchain less useful. XRP is stuck in a cycle where low blockchain activity makes investors less likely to keep the token. This is because there are no native staking yields on competitor chains like BNB and Solana. Derivatives positioning, ETF flows, and on-chain data all show that interest is waning, especially from institutional investors. This makes it unlikely that bullish momentum will last for a long time.
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