Ethereum Price Targets $5K After Bullish Breakout and Whale Demand
As Bitcoin price #BTC approached a new all-time high (ATH) exceeding $106K, Ethereum price #ETH indicated the beginning of its macro bull rally. With a fully diluted valuation around $476 billion and a 24-hour trading volume near $30 billion, Ethereum successfully retested a bullish breakout from a multi-year pennant consolidation.
Following a strong rebound over the past two months, Ethereum is positioned to challenge its ATH near $5K. In the daily timeframe, Ether’s price against the US dollar has retested a macro-falling logarithmic trend. For continued bullish momentum, Ether must convert the resistance level around $3,950 into solid support.
The weekly Relative Strength Index (RSI) needs to exceed 70 percent to confirm the bullish trend. A potential correction could see Ethereum decline towards the support level of approximately $3,580 before resuming upward momentum.
Ethereum Whales Bet on Further Uptrend
Recent reports indicate heightened demand for Ethereum among whale investors, particularly after Bitcoin reached around $100K. Data from CoinGlass shows that the overall supply of Ether on centralized exchanges (CEXes) fell by over 177K in the last 30 days, totaling about 15.6 million.
This decline is primarily due to increased demand from whale investors, driven by US spot Ethereum ETFs. According to Glassnode, the number of Ethereum addresses holding more than 10K Ethers surged in recent months, with institutional investors betting on Ethereum’s leadership in Web3 fueled by rising utility and on-chain activities.
The Ethereum network enables whale investors to earn passive income through staking, with approximately 34 million Ether staked by over 100K validators.
US spot Ether ETFs have seen net cash inflows surpassing $2.1 billion in the past three weeks, with BlackRock's ETHA leading the way, recording a weekly inflow of about $854.85 million last week.
Bigger Picture
The Ethereum network remains a leader in Web3, boasting over $78 billion in total value locked (TVL) and more than $110 billion in stablecoin market cap. With over 428K active addresses in the past 24 hours, Ethereum is well-equipped for mainstream adoption of digital assets and Web3 projects.
The ecosystem has garnered significant support from the United States, especially with anticipated backing from the upcoming Trump administration, which is expected to bolster the crypto industry.