Ethereum Price Aims for $4K Breakout Amid Bullish Market Trends
Liquidations in the crypto market have decreased to $312 million, with a total market cap (excluding Bitcoin) rising to $1.41 trillion. Ethereum's price shows strong support at $3,200, indicating a potential reversal toward the $4,000 resistance level.
Institutional Interest
- Trump’s World Liberty Financial bought 3,247 ETH for $10 million, increasing its holdings to 78,722.84 ETH worth nearly $257 million.
- The fund has spent around $130 million on 39,242 ETH tokens over the past week.
- Holdings include 63,253 ETH in a multi-signature wallet and a 19,408 ETH stake in Lido Finance.
- Compared to pre-inauguration, the fund's ETH holdings increased by nearly 4,000%.
- It also saw significant increases in wrapped Bitcoin and stETH holdings.
Historical Insight
- Ted Pillow suggests Ethereum may follow a similar bullish path as in Q4 2020.
- If historical trends repeat, Ethereum could rise from $4,000 to $5,000 and then $6,000 within 6-8 weeks after breaking the $4,000 resistance.
ETF Outflows
- Short-term institutional support is challenged with $136.25 million in ETF outflows.
- Grayscale sold $84.24 million worth of ETH; Fidelity offloaded $68.46 million.
- BlackRock continues to buy, acquiring $20.69 million worth of ETH recently.
Technical Analysis
- ETH shows a falling wedge pattern on the 4-hour chart with critical support at $3,000.
- A double-bottom reversal is suggested by bullish divergence in the RSI.
- Key resistance levels are at $3,278 and $3,437 (38.20% Fibonacci), with upward potential toward $3,693 (61.80% Fibonacci).
Ethereum's recovery signals potential for a breakout, but vigilance is needed due to ETF outflows and resistance levels that may pose short-term challenges.