Institutional inflows from BlackRock, Fidelity, and Grayscale totaled over $100 million, with net assets under Ethereum ETFs reaching $11.78 billion.
Whale activity increased, with over 100,000 ETH purchased during the dip, signaling strong confidence in Ethereum’s future.
Technical indicators, including MACD and True Strength Index, suggest a potential breakout, increasing the likelihood of ETH surpassing $4,000.
Ethereum is approaching key resistance at $3,250, with a breakout potentially driving prices toward the $4,000 mark.
As Bitcoin trades near the $104,000 mark, Ethereum 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.
Ethereum Price Crosses $3,200: Bulls to Challenge Local Resistance
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.
ETF Inflows Hit $67M: Drives the Ethereum Rally
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.
Growing Whale Interest Hints Uptrend Ahead
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
Whales bought over 100,000 during the recent price dip!
— Ali (@ali_charts)
The data from CryptoQuant highlights the whales purchasing over 100,000 ETH tokens during the recent dip. Furthermore, in a significant transaction, a bought 1,531 ETH tokens worth 5.01 million USDC .
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.
