Amid increasing whale interest, price of Ethereum jumps overnight. With a potential breakout rally over horizon, should you consider buying more ETH like Donald Trump’s WLF?
By Vishal Dixit
Edited by Julia Sakovich
Updated
3 mins read
As Bitcoin BTC $85 140 24h volatility: 3.0% Market cap: $1.69 T Vol. 24h: $29.69 B trades near the $104,000 mark, Ethereum ETH $1 902 24h volatility: 4.1% Market cap: $229.63 B Vol. 24h: $15.87 B continues to recover. Yesterday, Ethereum price surged by 4.29% to reach a closing price of $3,247.
With two consecutive days of positive growth, Ethereum is preparing for a falling-wedge breakout rally. Will this breakout rally result in a price surge beyond the $4,000 mark? Let’s explore it.
In the daily chart, the Ethereum price trend reveals a bullish comeback from the local support trend line. This results in a morning star pattern with the bullish engulfing candle from yesterday.
Furthermore, it marks a positive cycle within a falling-wedge pattern. Increasing the chances of a breakout rally, the reversal rally in Ethereum has reached the $3,250 psychological mark.
Ready to challenge the overhead resistance line, the technical indicators are starting to give a buy signal for Ethereum. The MACD and signal lines have given a positive crossover.
Furthermore, the true strength index is on a similar map to give a buy signal. The chances of Ethereum getting a breakout rally are significantly increased.
Amid the increasing chances of a bullish breakout, the sudden recovery in Ethereum comes with the newfound institutional support. On January 30, three major Ethereum ETFs purchased ETH worth more than $100 million.
However, the daily net inflow remained at $67.77 million. BlackRock, the largest purchaser, on January 30 acquired $79.86 million worth of ETH.
Following their footsteps, Fidelity purchased $15.41 million and Grayscale purchased $12.79 million. However, the Grayscale mini-Ethereum trust offloaded $40.29 million, pulling back the daily net inflow.
Currently, the total net assets under the Ethereum ETFs stand at $11.78 billion. The Ethereum ETFs are expected to start a new buying spree.
As the price action analysis and institutional inflows project a potential bull rally, the interest from the side of whales is growing. In a recent X post by Ali Martinez, the balance by holder value witnesses a significant increase.
Whales bought over 100,000 #Ethereum $ETH during the recent price dip! pic.twitter.com/q2iHx2aIO8
— Ali (@ali_charts) January 30, 2025
The data from CryptoQuant highlights the whales purchasing over 100,000 ETH tokens during the recent dip. Furthermore, in a significant transaction, a whale bought 1,531 ETH tokens worth 5.01 million USDC USDC $1.00 24h volatility: 0.0% Market cap: $60.12 B Vol. 24h: $10.24 B .
The purchase occurred at an average price of $3,277. Furthermore, the bullish whale currently holds 3,005 ETH worth $9.85 million, with its holding divided into two different wallets. The whale shows extreme confidence over Ether’s future.
In a nutshell, with strong institutional inflows, bullish technical indicators, and increasing whale accumulation, Ethereum is well-positioned for a breakout. If it breaches the falling wedge resistance, a rally beyond $4,000 could be imminent. Thus, it makes the coming days crucial for the ETH price action.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
