Ethereum Gains Momentum: $960 Million Binance Inflow and Surging ETF Activity Fuel Rally

Ethereum flexes its muscles—again. A tidal wave of capital just hit the network, and the smart money is taking notice.

The Whale-Sized Deposit

Nearly a billion dollars in fresh capital flowed into a major exchange this week. That's not retail FOMO; that's institutional positioning. When numbers that large move, they don't whisper—they roar. The market interprets this as a massive vote of confidence, a bet that the current floor is solid and the ceiling is far, far higher.

ETF Engines Ignite

Meanwhile, the exchange-traded fund pipeline is humming. Trading volumes aren't just up—they're exploding, signaling that traditional finance's gateway drug for crypto exposure is working as intended. It's the kind of sustained, high-volume activity that turns a bounce into a trend, pulling in liquidity that used to sit on the sidelines.

The New Calculus

Forget the old narratives. This isn't just about decentralized apps or NFT jpegs anymore. The game has changed. We're now watching a dual-track validation: massive on-chain conviction meets relentless TradFi product demand. It creates a feedback loop that's notoriously hard to break once it starts spinning.

Sure, some desk jockeys on Wall Street will still call it a 'speculative asset'—usually right before their firm quietly opens a new crypto division. The price action, however, speaks a simpler truth: capital is voting with its wallet. The only question left is how high the ceiling goes before the usual chorus of 'this time it's different' starts up again.

The most recent rally follows a rather choppy end of 2025 when ethereum tested support below $3,000. However, activity has since rallied due to stronger exchange volumes and spot ETF demand. This is indicative of how money flows are indicative of short-term sentiment.

Ethereum Sees Major Inflows to Binance

According to CryptoQuant data, Ethereum experienced a net inflow of 960 million US dollars to Binance in December of 2025. This is the largest monthly net inflow for Ethereum since July.

For the period between July and November, there were more withdrawals than deposits on the Ethereum network, indicating that cryptocurrencies were being held off-exchange. Large ETH deposits on Binance in December led to increased liquidity on the platform.

The inflow was quite high compared to other monthly levels in the past, which indicates there is a noticeable change in the positioning of market participants regarding Ethereum.

Spot Ethereum ETFs Continue to Draw Capital

The exchange flows were boosted by the strong demand for spot Ethereum ETFs at the beginning of the year, as indicated in the SoSoValue data that showed $174 million net inflow in Ethereum spot ETFs on January 2.

The daily inflow leader was Grayscale’s Ethereum Trust ETF, which attracted $53.7 million, although it has had a net outflow of $4.996 billion over the long term. The Grayscale ETH Mini Trust ETF attracted $50 million, taking the total inflow to $1.538 billion.

The total net assets for Ethereum spot ETFs are $19.046 billion, which is roughly 5.06% of Ethereum’s total market cap. The total net flows for all spot Ethereum ETFs are $12.502 billion.

Network Upgrades and Charts Remain in Focus

The data obtained from Ethereum’s FLOW corresponds to the increasing interest in upgrades to come. Upgrades such as Pectra and Fusaka will improve scaling and reduce transaction costs. This is an important field for those analyzing the long-term development of ETH.

Focus is on ETH breaking above $3,000, with momentum tools indicating a buy zone. $3,250 is a significant level to watch, with a break often being considered a sign of a stronger trend.

Long-term price predictions have again floated to the fore, with Tom Lee predicting prices of between $7,000 and $9,000 for Ethereum in the year 2026.

ETH is gaining traction due to increased exchange inflows, steady demand for ETFs, and improvement in technicals. Going ahead, we will see if it is a strong enough rally to sustain.