Ethereum Price Drops 15% to $3,381 Amid Whale Accumulation
Ethereum (ETH) faced significant resistance at approximately $4,050, resulting in a price retracement of over 15 percent to around $3,381 as of December 27. The market capitalization of Ethereum is about $407 billion, marking its worst weekly losses since the re-election of President-elect Donald Trump.
Currently, Ethereum is forming a bearish continuation pattern that may lead to a further decline of 10 percent toward the support level near $3,000. The price has consistently closed below the 50-day Moving Average amid ongoing market corrections.
The fear and greed index for Ethereum stands at 57 percent, indicating trader greed, which suggests a likely further correction in the short term. However, Ethereum shows a macro rising trend, projecting bullish potential for the first quarter of 2025.
The ETH/BTC pair is also showing signs of a possible bullish pattern after three years of a bearish trend. Recently, Ethereum's price broke out of a multi-year consolidation phase, closing on a logarithmic trend that could signal a bullish continuation toward $5,000.
#Ethereum is about to explode!💥 pic.twitter.com/rfpUnG3dQl
— Crypto Rover (@rovercrc) December 26, 2024
Ethereum Whales Aggressively Accumulate
On-chain data indicates that the total supply of Ether on centralized exchanges has decreased by over 450,000 in the last four weeks, currently standing at approximately 15.39 million. Demand for Ethereum has surged amidst increasing calls for an altseason.
US spot Ether ETFs have emerged as significant buyers, alongside individual whale investors. Recent market data reveals that these ETFs have recorded a cumulative net inflow of about $2.63 billion, holding total net assets exceeding $12 billion. Notably, Fidelity’s FETH and BlackRock’s ETHA led this trend, with a daily cash inflow of approximately $117 million.
Importantly, no US spot Ether ETF issuers reported net cash outflows recently, reflecting bullish sentiment among long-term investors. This rising demand from institutional investors coincides with notable cash inflows into the ETH Futures Open Interest, currently around $23 billion, the highest since Ethereum's inception.