Ethereum Price Poised for Bullish Breakout to $4K Amid Whale Activity
Ethereum price #ETH has rallied 50 percent over the past four weeks, trading above $3,500, and is approaching a significant bullish breakout towards its all-time high. With a fully diluted valuation of approximately $427 billion, Ethereum is currently retesting a critical resistance level, which may lead to a substantial short squeeze.
In the last 24 hours, Ethereum's leveraged market surpassed Bitcoin's #BTC in total liquidations, indicating increased speculation. Ethereum's Open Interest (OI) has risen to over $24 billion, up from around $10 billion in early September 2024.
This surge in speculation may result in heightened volatility and forced liquidations. Additionally, the ETH/BTC pair is forming a macro reversal pattern, marked by a falling trend accompanied by a bullish divergence in the Relative Strength Index (RSI). Bitcoin dominance is also showing signs of a reversal, raising the likelihood of an altseason soon.
Ethereum Whales Heighten On-chain Activities
Ethereum whales are increasing their on-chain activities, potentially signaling a forthcoming parabolic rally. The number of staked Ether has grown to over 34.5 million ETH, supported by more than 100,000 validators.
Despite this, the supply of Ether on centralized exchanges has been rising, with net inflows of about 500,000 ETH in the past 30 days. Recent reports indicate that US spot Ether ETFs have seen lower demand compared to Bitcoin.
Two notable Ether whales have mirrored actions taken by the Ethereum Foundation regarding asset liquidations. On Thursday, Jeffrey Wilcke, co-founder of Ethereum, deposited 20,000 ETH valued at approximately $72.5 million into Kraken. Winslow Strong, director of Qualia Research Institute, deposited 9,380 ETH worth about $33.7 million into Coinbase Global Inc (NASDAQ: COIN). Another whale spent $64 million to acquire nearly 20,000 ETH units in the past 12 days.
Midterm Expectations
Technically, Ether price is trending upward toward a new all-time high, similar to Bitcoin. The altcoin has been establishing higher highs and higher lows since the bullish breakout earlier this month, driven by pro-crypto US leaders, including President-elect Donald Trump.
#ETH Descending Broadening Wedge Upside Breakout is Finally Confirmed.. ✅
PAMP it Sirs..🔥📈#Crypto #Ethereum #ETH pic.twitter.com/6c6s5gLVd1
— Captain Faibik 🐺 (@CryptoFaibik) November 29, 2024
If institutional demand for Ether continues, particularly through spot ETH ETFs, the price may reach $4,000. A rise to this level could lead to nearly $1 billion worth of short trades being liquidated.