Ethereum Surpasses $4,000 Following Transactions of $667 Million by Whales - Examining ETH's Price Response
Ethereum, the second-largest cryptocurrency by market capitalisation, has broken through the $4,000 barrier, marking a significant milestone in its price journey. This surge is attributed to a combination of technical breakthroughs, aggressive institutional accumulation, and low exchange reserves.
Over the past weeks, Ethereum [ETH] broke through a major resistance level at around $4,100 that had capped gains for over 18 months, signalling strong bullish momentum. This technical breakout has led to optimistic price projections, with some analysts predicting a possible rally up to $7,000 by the end of 2025 [1][3].
Key factors contributing to this surge include:
- Institutional accumulation: Large institutions have bought significant amounts of ETH off exchanges via over-the-counter (OTC) desks such as FalconX, Galaxy Digital, and BitGo. On-chain data revealed that nearly $667 million worth of ETH was moved into six new wallets as part of a coordinated strategy for long-term holdings [2][4].
- Aggressive buying by “mysterious” whales: For example, within one week, an unknown institution acquired over 221,000 ETH (~$1 billion), spreading holdings across wallets for security [1].
- Market indicators: Technical indicators like the Relative Strength Index (RSI) above 72 and a widening Moving Average Convergence Divergence (MACD) have confirmed sustained buying pressure, reinforcing bullish sentiment [2].
- ETF inflows and growing network activity: Ethereum ETFs have attracted substantial investments, with $2.8 billion inflows in the past week, surpassing Bitcoin ETFs by a wide margin. This ETF demand boosts confidence in Ethereum’s institutional adoption and underpins price support [5].
- Reduced circulating supply pressure: Although Ethereum’s circulating supply has officially reached 121 million ETH, according to CryptoQuant data, significant amounts (36.18 million ETH) are locked in staking, reducing available supply and offsetting inflation effects [2].
- Corporate treasury accumulation: Public companies like BitMine Immersion Technologies and SharpLink Gaming have added over $1.2 billion worth of ETH to their reserves, reflecting broader corporate interest in Ethereum [1].
This coordinated institutional buying combined with positive technical signals, enhanced ETF demand, and a shrinking effective supply have driven Ethereum’s price past $4,000 and encouraged projections for substantial further gains in 2025 [1][2][3][5].
It's worth noting that Ethereum's staking activity continues to offset a portion of its daily issuance, influencing its inflation profile by easing the effects of increased circulation. At the time of writing, Ethereum closed at $4,196, and the network mints between 2,500 and 3,000 ETH daily.
This surge triggered the largest short liquidation in months for Ethereum, as investors who had bet against its rise were forced to close their positions. Over $667 million worth of ETH has been accumulated by six new wallets from major exchanges, indicating a significant shift in market sentiment towards Ethereum.
As Ethereum continues to make headlines, it's clear that the cryptocurrency market remains a dynamic and exciting space to watch.
References: [1] Yahoo Finance [2] Cointelegraph [3] Forbes [4] Decrypt [5] Bloomberg
- The coordinated accumulation of Ethereum [ETH] by institutions, such as FalconX, Galaxy Digital, and BitGo, has significantly contributed to its price surpassing $4,000.
- The staking activity of Ethereum has served to offset a portion of its daily issuance, thus influencing its inflation profile by lessening the impact of increased circulation.
- The surge in Ethereum's price has triggered the largest short liquidation in months, as investors who had bet against its rise were forced to close their positions.
- Over $667 million worth of Ethereum [ETH] has been accumulated by six new wallets from major exchanges, indicating a shift in market sentiment towards Ethereum.
- The Ethereum Exchange-Traded Funds (ETFs) have seen substantial investments, with $2.8 billion inflows in the past week, surpassing Bitcoin ETFs by a wide margin, boosting confidence in Ethereum’s institutional adoption.
- The technological advancements in Bitcoin and Ethereum mining, coupled with the adoption of Ethereum in the crypto market and by corporate entities, have influenced the overall market sentiment and Price predictions for Bitcoin [BTC] and Ethereum [ETH] in the near future.
