Institutional moves remain mixed, with BlackRock buying $20.69M ETH amid $136.25M ETF outflows.
Falling wedge and double bottom reversal hint at potential upside to $3,693.
Trump’s fund boosts ETH holdings to $257M, signaling long-term bullish sentiment.
Ethereum eyes a breakout above $4,000, targeting $5,000 to $6,000 in 6-8 weeks.
As liquidation in the crypto market cools down to $312 million, the bullish recovery is clearly visible with the total crypto market cap, excluding Bitcoin , has bounced back to $1.41 trillion. As ETH dominates this index, the Ethereum price reveals strong bullish support at lower levels.
Furthermore, with the Ethereum price reclaiming the $3,200 level, the current market analysis hints at a potential reversal. Will this reversal reach the $4,000 crucial resistance?
Institutional Interest: Trump’s Fund Buys More Ethereum
Fueling the bullish anticipations, Trump’s World Liberty Financial has recently acquired another batch of Ethereum tokens. In the recent , Trump’s financial fund bought 3,247 ETH tokens for $10 million.
This pumps the WLF’s ETH holding to 78,722.84 ETH. At the current market price, this is worth nearly $257 million. Over the past week, the venture fund has spent nearly $130M to acquire 39,242 ETH tokens.
The buying spree comes at an average price of $3,312 and is down by $5.12 million, registering a 3.94% loss. The Ethereum holding of WLF constitutes 63,253 ETH tokens in a multi-signature wallet.
Furthermore, it also holds a 19,408 ETH stake in Lido Finance. Beyond this, the fund might hold another 14,611 ETH worth $46.6 million at Coinbase.
As Trump’s presidency continues, the chances of smoother regulations and growing crypto support will likely boost crypto prices.
As a surprising , Donald Trump’s venture now holds nearly 4,000% more ETH compared to his pre-inauguration holdings. Apart from Ethereum, the venture fund has also increased the wrapped Bitcoin holding by 3,570% and stETH holding by 309% compared to the pre-inauguration levels.
Historical Insight: Parabolic Rise Possible
In a recent (formerly Twitter) by Ted Pillow, a crypto investor, highlights a bullish insight into the Ethereum price trend. Ted reveals Ethereum is following a similar price path to Q4 2020.
Hence, Ted anticipates a parabolic rise in Ethereum. The similarities in the market conditions in 2020 and the current times are the massive surge in Bitcoin, the DeFi hype, and the increased liquidations. Meanwhile, Ethereum is struggling to sustain its bullish trend like in Q4 2020.
However, despite similar conditions, Ethereum came out victorious in late 2020. Compared to the $4,000 resistance in the current timeframe, Ethereum was facing strong bearish opposition near $400 in 2020.
“Mark my words: Once ETH closes above $4K, it’ll reach $5K and then $6K within 6-8 weeks.”
“Mark my words: Once ETH closes above $4K, it’ll reach $5K and then $6K within 6-8 weeks.”
However, the bullish breakout eventually led to a 150% rise in a matter of two months. Hence, if history dictates the Ethereum price trend, the $4,000 breakout will likely reach $5,000, followed by a $6,000 price target within 6-8 weeks.
Ethereum ETF Outflows Pose Short-Term Challenges
Despite the strong chances of a bullish recovery, the short-term is taking a massive hit. The daily net flow of the nine US Ethereum spot ETFs recorded an outflow of $136.25 million.
Leading the offloading move, Grayscale’s mini Ethereum trust sold $84.24 million worth of ETH. This move was followed by Fidelity selling $68.46 million of ETH and Bitwise offloading $4.23 million worth of ETH.
While the rest of the Ethereum ETFs maintained a net zero flow, continued to acquire Ethereum at the bottom. On January 27, BlackRock’s ETH purchased $20.69 million worth of ETH tokens.
Ethereum Technical Analysis: Falling Wedge and Double Bottom Reversal
In the 4-hour chart, the ETH price trend reveals a falling wedge pattern. However, the critical support at the $3,000 psychological mark helps in an early reversal.
This hints at a potential double-bottom reversal from this psychological mark. Supporting the reversal chances, the 4-hour RSI line highlights a bullish divergence in the double-bottom pattern.
Key Ethereum Levels to Watch
The neckline of the bullish pattern remains at the 38.20% Fibonacci level at $3,437. However, to reach the neckline, the ETH must face two critical resistances: the 23.60% Fibonacci level at $3,278 and the local resistance trend line.
Hence, if the ETH price reaches the neckline, the price action will mark a bullish breakout of a falling wedge pattern. This will significantly increase the upside chances in ETH to reach the 61.80% Fibonacci level at $3,693.
On the flip side, the psychological support at $3,000 remains solid and might continue to absorb the incoming supply waves.
Ethereum’s bullish recovery signals a potential breakout, with historical trends and institutional moves aligning for a possible parabolic rise. However, ETF outflows and resistance levels could present short-term challenges, requiring close attention to key levels at $3437 and $3693 for sustained upside momentum.
