- ETH goes for another attempt at the $4,000 price tag as bulls resume dominance.
- Ethereum ETFs and whales demonstrate continued inflows.
As a seasoned analyst with over two decades in the financial markets under my belt, I must say that the recent surge in Ethereum (ETH) prices has caught my attention. The bullish momentum is undeniable, and it seems like the cryptocurrency is aiming for another attempt at the $4,000 price tag.
In an unexpected twist, Ethereum (ETH) has picked up its upward momentum once again. Despite predictions suggesting further declines due to increased profit-taking after reaching a recent peak, the trend has surprisingly reversed.
Supporters of Ethereum (ETH) are optimistically targeting a recovery over $4,000, given its current positive trend. In just the past day, ETH’s price has surged following a mid-week rebound, reaching as high as $3,950.
Thus far, the bulls have been striving to maintain their position, despite a minor dip that brought the current price down to $3,912 at the moment of press.
Is it possible that this is merely a short-term shift? The RSI suggests that Ethereum’s native cryptocurrency might continue to decline in the near future.
In the past day, an unforeseen bullish comeback led to a significant increase in short position closures, with approximately $187.27 million in short positions being closed.
In contrast, only $78.08 million longs got rekt during the same period.
Exploring the catalyst behind the latest ETH mid-week rally
The surprising mid-week bounce may be rooted in speculation, especially around Donald Trump.
Lately, it’s been disclosed that a business named World Liberty Financial, connected to Trump, has been actively purchasing cryptocurrencies.
According to reports, World Liberty Financial allegedly purchased approximately $5 million in Ethereum (ETH). The value of their ETH holdings is said to exceed $55 million.
This purchase could have boosted optimism, shifting focus away from the pessimistic start of the week. Yet, it wasn’t the sole piece of positive Ethereum-related news.
Exchange-Traded Funds (ETFs) focused on Ethereum have contributed to its growing popularity and possibly protected it from further decreases. Over the past eight days, these ETFs have consistently seen inflows of money.
Could Ethereum (ETH) keep climbing or face selling pressure? Over the past two days, there have been more withdrawals (outflows) from the market compared to deposits (inflows).
However, the last 24 hours saw exchange inflows almost matching outflows.
ETH exchange flows underscore the possibility for sell pressure to overtake the bulls.
Furthermore, past data indicates that large Ethereum holders (ETH whales) have been steadily amassing more coins. Specifically, their coin balances increased from approximately 59.39 million coins on November 9th to around 60.57 million coins by December 11th.
Read Ethereum’s [ETH] Price Prediction 2024–2025
Over the past month, whales (large investors) have been accumulating ETH, but there’s been a general decrease among ETH’s broader investor base. Additionally, minor withdrawals have been noticed from the retail investor sector as well.
In simpler terms, large Ethereum investors (ETH whales) are generally less affected by market unpredictability compared to individual or smaller-scale retail traders, as well as institutional ones.
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2024-12-13 01:11