ETFs Inflow & Whale Accumulation Surged: Ethereum Price To Hit $5K?

• Before the subsequent surge, Ethereum was stabilizing. This indicated that the token was repeating its earlier movements.
• ETH experienced a 16% decline from its peak of $4,100 last week. However, Ethereum ETFs continued to draw over $2.5 Billion in inflows.
• A Nexo whale has made a significant deposit to Binance, this time for $4,946 ETH ($17.2 Million).

Ethereum (ETH) has struggled between the $4K and $2K levels over a wider time frame in 2024. The token has attempted to overcome the $4K level many times but couldn’t. In December, buyers tried twice to surpass this level. However, sellers were strong enough and dragged down the price.

In mid-December, the Ethereum price declined, and strong buying pressure was felt on the support level of $3K. Amid this bullish momentum, the price has reached the 20-day EMA.

An increase in Whale accumulation and ETH ETF inflow has been noticed. This development could trigger a bullish rally.

ETH ETF Inflow and Whale Accumulation Analysis

Even though Ethereum ETFs saw inflows of over $2.5 Billion, they saw a 16% decline from their peak of $4,100 last week. Strong investor confidence was demonstrated by these sizable inflows, which happened as prices fluctuated.

Notably, outflows showed the most significant declines in December, with $49.2 Million and $75.1 Million.

The Nexo-associated whale’s recent activity on Binance brought significant ETH movements to light. Recently, the whale sent 4,946 ETH, worth about $17.2 Million.

This massive transfer fits into a larger trend seen since December 2. At that time, 114,262 ETH worth approximately $423.3 Million were transferred to Binance at an average price of $3,705.

Could ETH Price Hit $5K Amid This Bulls’ Participation?

When writing, the Ethereum price was trading at $3,423.00, which has declined by 2.04% over the past 24 hours. The market capitalization was $412.97 Billion, and the 24-hour trading volume was $18.19 Billion.

The ETH price has been hovering between the 20-day EMA and 200-day EMA. However, it has managed to defend the 200-day EMA and is heading toward the 20-day EMA.

Buying momentum can be anticipated if the Ethereum price surpasses the 20-day EMA. Amid this bull run, the momentum could be disturbed near the $4K mark.

Once the price overcomes the major resistance zone of $4K, it may reach the $5K mark. On the other hand, if the price drops below the 200-day EMA, a profit booking scenario can be generated. Suppose it sustains below the support level of $3K; sellers may dominate ahead.

Ethereum Price Analysis and Forecast

Ethereum price’s recent movements and trends indicated a volatile yet potentially favorable outlook for the cryptocurrency. The token has witnessed a decline from its peak. Despite this, the significant inflows into Ethereum ETFs and increased whale accumulation suggest strong investor confidence.

The ongoing struggle at the $4K resistance indicates a critical point for future price action. If Ethereum can successfully surpass this level, it may trigger a bullish rally towards the $5K mark.

However, caution remains warranted. A decline below the 200-day EMA could lead to profit-taking and increased selling pressure. This could happen if the Ethereum price falls below the $3K support level.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.