Key Points
- Ethereum’s price has rebounded from a crucial support level despite low demand from large investors.
- Despite this, Ethereum remains a leader in the Web3 sector with significant total value locked and stablecoins market cap.
Ethereum, a leading player in the altcoin industry, has seen a resurgence in bullish sentiment. This follows an impressive rebound in Bitcoin’s price over the past 24 hours.
After dipping below $3,000 on Monday, Ethereum’s price has recovered by more than 8% in the past 24 hours, trading at approximately $3,177 at the time of writing.
Market Indicators
The large-cap altcoin, which has a fully diluted valuation of about $383 billion and a 24-hour average traded volume of around $40 billion, ended Monday with a Doji candlestick. This suggests a potential bullish rebound in the near term.
In addition, Ethereum’s price has been forming a bullish continuation pattern in the daily time frame. The altcoin has successfully rebounded from the 50-day Moving Average (MA), indicating a potential rebound towards the all-time high.
The reversal of Bitcoin dominance in the macro time frame has signaled the onset of the much-anticipated altseason in the coming months.
Ethereum Whales and Market Movements
Despite the increased crypto volatility, Ethereum whales have been less active in recent days. On-chain data analysis shows that the number of new active addresses has declined by 9.32% in the past week, hovering around 100,000.
Since March 2024, demand for Ether by large investors has remained low, even with the approval of spot ETH ETFs. According to on-chain data analysis provided by Coinglass, the number of ETH supplies on centralized exchanges has increased by more than 400,000 Ethereum units to around 15.8 million since January 2025.
The US spot Ether ETFs registered the fourth consecutive day of cash outflow on Monday. According to the latest market data, the US spot Ether ETFs registered a net cash outflow of about $39 million on Monday, resulting in a total net inflow of about $2.4 billion and cumulative net assets of $10.8 billion.
Interestingly, only BlackRock’s ETHA registered a net cash inflow of about $12.9 million on Monday and currently holds about $3.4 billion in net assets.
Ethereum’s Position in the Web3 Sector
Ethereum continues to lead the Web3 sector, with more than $63 billion in total value locked and over $113 billion in stablecoins market cap. The significant development of Ethereum’s layer two (L2) scaling solutions bags has attracted more on-chain activities in the past year, primarily from institutional investors.
US president-elect Donald Trump holds a large portion of his crypto portfolio in Ether and its related ERC20 tokens.
As digital assets continue to gain mainstream adoption worldwide, led by institutional investors, Ethereum’s price is well positioned to rally exponentially. Major developments in Ethereum, including network upgrades, have increased the overall utility of Ether for real-world use cases.
