Ethereum’s Recent Performance
Over the past two weeks, Ethereum (ETH) experienced a significant price retracement of over 15%, settling at approximately $3,375 as of Friday, December 27, during the early European trading hours. This notable altcoin, boasting a market capitalization of around $406 billion and an average 24-hour trading volume near $23 billion, has rebounded from a crucial support level.
Potential for Future Growth
The TOTAL2 index has already retested its previous all-time high of around $1.6 trillion, positioning Ethereum for a potential rally towards the $5,000 mark. Additionally, the ETH/BTC pair is forming a macro reversal pattern, supported by a bullish divergence on the weekly Relative Strength Index (RSI), suggesting optimistic future prospects.
Ethereum Whales Gear Up for Market Movements
In recent years, Bitcoin has outperformed many large and mid-cap altcoins, prompting whale investors to strategically reposition their portfolios in anticipation of a parabolic altseason. Ethereum’s Open Interest (OI) and trading volume have recently surged to over $23 billion, setting a new all-time high.
According to Coinglass’s on-chain data analysis, the supply of Ethereum on centralized exchanges has decreased from 16.12 million on November 29 to approximately 15.3 million. This decline is largely attributed to the growing demand from U.S. spot Ether ETF issuers, such as BlackRock’s ETHA and Fidelity’s FETH, which have attracted more than $2.64 billion in cumulative net inflow since their inception, managing a total of about $12.01 billion in assets.
On a recent Thursday, U.S. spot Ether ETFs recorded net cash inflows of approximately $117 million, with a total traded value around $390 million. Furthermore, on-chain data analysis reveals that whale investors withdrew 1,500 Ether, valued at $5.21 million, from Binance within the last 24 hours.
Technical Analysis and Future Outlook
From a technical standpoint, Ethereum’s price has rebounded from a descending logarithmic trend established earlier this year, indicating potential bullish momentum in the near term. Moreover, Ethereum’s price has remained above the weekly 50 Moving Average for the past two months.
As a result, Ethereum appears poised to reach $5,232 in the near future, aligning with the 1.618 daily Fibonacci Extension. This indicates a potential upward trajectory for the altcoin, suggesting an optimistic outlook for investors.
