Ethereum Leverage Reset Complete – Time For Market Re-Accumulation?

The flow of capital into spot Bitcoin and Ethereum ETFs has shown signs of recovery, marking the first week of net-positive inflows since October, following a prolonged period of outflows. This shift indicates a potential stabilization in institutional demand for these cryptocurrencies after a challenging month.

Ethereum developers are preparing for the Fusaka upgrade, the second significant upgrade of 2025, scheduled for December 3. This upgrade aims to enhance the network's capacity and efficiency, following the previous Pectra upgrade. The anticipation surrounding Fusaka is heightened by recent adjustments, including an increase in the block gas limit to 60 million.

Ethereum's price has recently declined significantly, trading at around $3,000, which marks a nearly 40% drop from its peak this year. This downturn aligns with a broader crypto market crash, raising concerns about the stability of Ethereum as it approaches the Fusaka upgrade scheduled for December 3.

BlackRock reported $2.34 billion in outflows from its iShares Bitcoin Trust (IBIT) in November, which the company described as a normal occurrence given the previous demand that had pushed the ETF close to $100 billion in assets.

Ethereum ETFs experienced significant outflows totaling $1.4 billion in November, reflecting a retreat by investors amid increasing caution and volatility in the cryptocurrency markets. This trend indicates a growing wariness among investors regarding the stability of Ethereum as a viable investment option.

Bitcoin's price has recently surpassed the $90,000 mark, marking a significant recovery after a notable downturn that saw it drop to an 8-month low of $80,000. This resurgence has sparked renewed optimism among investors, despite ongoing concerns about market volatility and potential resistance at current levels.

Bitcoin, Ethereum, and XRP are experiencing a price recovery, with the United States identified as a significant source of market support. Recent trading data indicates that buying and selling pressures are unevenly distributed, reflecting a shift in trader behavior amidst fluctuating prices.

BlackRock's US-listed spot bitcoin ETF, IBIT, launched in January 2024, has rapidly amassed $70 billion in assets and generated substantial fees, becoming the firm's primary revenue source. This remarkable growth highlights the increasing interest in cryptocurrency investments among institutional investors.