The recent surge in the price of Ethereum has sparked renewed optimism among traders, following Bitcoin’s breakthrough above $107K. Ethereum has now surpassed $4000, signaling a shift in market sentiment. While some market participants were previously uncertain about the future price action, the latest price increase has reignited hopes for a new all-time high (ATH), possibly in early 2025.
Ethereum has traditionally closely followed Bitcoin’s price movements, particularly during the 2021 bull run. However, the current market dynamics suggest that Ethereum may be charting its own course. One key factor contributing to this divergence is the influx of funds into spot Ethereum exchange-traded funds (ETFs), which intensified after the U.S. election results. Additionally, large Ethereum holders, or “whales,” have been steadily increasing their positions, with the number of wallets holding at least 100,000 ETH reaching levels not seen since 2017.
Data from Santiment indicates that these whale wallets now hold 57.35% of the total Ethereum supply, with 104 wallets containing at least 100,000 ETH. In contrast, the number of wallets holding smaller amounts of ETH has been declining, with wallets holding between 100 and 100,000 ETH and below 100 ETH accounting for 33.46% and 9.19% of the supply, respectively. This trend suggests strong bullish momentum in the long term, with whales controlling a significant portion of the supply.
Looking ahead, the question on everyone’s mind is: what’s next for the ETH price rally, and when can we expect a new ATH? Drawing parallels to Bitcoin’s recent price action, Ethereum appears to be on the cusp of a major breakout. If Ethereum follows a similar trajectory to Bitcoin, we could see the price surpass $5000 and reach new ATH levels.
On the technical front, the weekly chart for Ethereum shows that the price has reached a crucial resistance level, with the Ichimoku cloud turning bullish. The recent purchase of 7.2 million ETH just below $4000 is expected to provide support and stabilize prices in this range. As a result, Ethereum is poised for a significant bullish move, potentially setting new highs by the end of 2024.
In conclusion, Ethereum’s recent price surge and market dynamics indicate a promising outlook for the token’s future. With strong institutional interest, whale accumulation, and technical indicators pointing towards a bullish trend, Ethereum is well-positioned to make a significant impact in the cryptocurrency market in the coming years.