Key Points
- Ethereum’s price has crossed the $3,600 mark, with the bullish trend gaining momentum.
- Whale holdings of Ethereum have surged, reflecting increased investor confidence.
As Bitcoin approaches the $100,000 mark, Ethereum has broken past the $3,600 barrier. The bullish trend is gaining strength, pushing Ethereum’s market cap closer to the $450 billion mark.
In the past week, Ethereum’s price has risen by 8.5% and continues to show signs of recovery. This positive start to the week suggests a possible extended rally, with price analysis projecting a potential trend towards the $4,000 mark.
Pathway to $4,000
The 4-hour price chart shows a bullish recovery for Ethereum, surpassing the crucial $3,500 supply zone. According to Fibonacci levels, the bullish trend has maintained dominance above the 50% Fibonacci level at $3,604.
Increased buying pressure has pushed the 4-hour RSI line into the overbought zone. Additionally, the 50 and 200 EMA lines in the 4-hour chart have produced a golden crossover.
Technical indicators are turning bullish amid the recovery run, signaling a buying opportunity. Currently, Ethereum is trading at $3,666, facing early high price rejection from the 61.80% Fibonacci level at $3,723.
Ethereum bulls are finding it difficult to cross beyond the $3,700 mark, suggesting a short-term pullback. This could extend the consolidation range between the 50% and 61.80% Fibonacci levels.
The breakout of these crucial bounded lines will determine Ethereum’s price trend. A bullish breakout could challenge the previous swing high at $4,109. On the other hand, the crucial support remains at $3,500.
Whale Holdings Surge
In the past week, Ethereum balance by holdings in USD shows a surge in whale holdings. On December 30, the total balance between $100,000 to more than $10 million stood at $442.67 billion.
This has risen to $479.99 billion, a significant increase of $37.32 billion. The major shift comes in the category between the price band of more than $10 million in investment, which has risen from $379.07 billion to $411.91 billion.
The $100,000 to $1 million price band increased from $27.81 billion to $29.91 billion. Meanwhile, the $1 million to $10 million price band has now reached $38.13 billion, up from $35.79 billion a week earlier.
Ethereum ETFs
On-chain data indicates an increase in large investors, and institutional support is also on the rise. On Friday, Jan. 3, the daily net inflow of U.S. Ethereum spot ETFs stood at $58.79 million.
With a strong closing, the weekly inflows registered a net outflow of $38.20 million. Currently, the total net assets stand at $13.03 billion, a significant increase from $6.94 billion in the last two months.
Ethereum’s bullish trend remains strong, with technical indicators and on-chain data showing increased investor confidence. A breakout above $3,700 could target $4,109, while support at $3,500 provides a safety net. Additionally, institutional inflows and whale activity bolster the recovery outlook.
