Key Points
- Ethereum’s price is on the recovery path, with bulls targeting a $4,000 mark.
- Increased institutional support and growing interest from whales hint at a potential uptrend.
As Bitcoin is currently trading near the $104,000 mark, Ethereum is on a recovery trajectory. Yesterday, Ethereum’s price saw a 4.29% increase, closing at $3,247.
Following two days of positive growth, Ethereum appears to be gearing up for a falling-wedge breakout rally. This rally could potentially push the price beyond the $4,000 mark.
Ethereum’s Bullish Comeback
The daily chart for Ethereum reveals a bullish comeback from the local support trend line, resulting in a morning star pattern with a bullish engulfing candle from yesterday.
This marks a positive cycle within a falling-wedge pattern, increasing the chances of a breakout rally. The reversal rally in Ethereum has reached the $3,250 psychological mark.
Technical indicators suggest a buy signal for Ethereum as it prepares to challenge the overhead resistance line. The MACD and signal lines indicate a positive crossover, and the true strength index appears to be on a similar map to give a buy signal.
Institutional Support Fuels Ethereum Rally
With the increasing chances of a bullish breakout, Ethereum’s sudden recovery is accompanied by newfound institutional support. On January 30, three major Ethereum ETFs purchased more than $100 million worth of ETH.
However, the daily net inflow remained at $67.77 million. BlackRock, the largest purchaser, acquired $79.86 million worth of ETH on January 30.
Following BlackRock’s lead, Fidelity purchased $15.41 million and Grayscale purchased $12.79 million. However, the Grayscale mini-Ethereum trust offloaded $40.29 million, reducing the daily net inflow.
Presently, the total net assets under the Ethereum ETFs stand at $11.78 billion. The Ethereum ETFs are anticipated to initiate a new buying spree.
Whale Interest Indicates Potential Uptrend
As the price action analysis and institutional inflows suggest a potential bull rally, interest from whales is on the rise. Recent data shows a significant increase in the balance by holder value.
CryptoQuant data highlights that whales purchased over 100,000 ETH tokens during the recent dip. In a significant transaction, a whale bought 1,531 ETH tokens, worth 5.01 million USDC.
The purchase was made at an average price of $3,277. Currently, the bullish whale holds 3,005 ETH, worth $9.85 million, divided into two different wallets. This shows extreme confidence in Ethereum’s future.
In summary, with robust institutional inflows, bullish technical indicators, and increasing whale accumulation, Ethereum is well-positioned for a breakout. If it breaches the falling wedge resistance, a rally beyond $4,000 could be imminent, making the coming days critical for Ethereum’s price action.
