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- ETH goes for another attempt at the $4,000 price tag as bulls resume dominance.
- Ethereum ETFs and whales demonstrate continued inflows.
Ethereum [ETH] has regained its bullish momentum in a surprising turn of events. This is despite expectations of more downside as profit-taking accelerated from its recent local high.
ETH bulls are aiming for a return above $4,000 as per their recent momentum. The cryptocurrency’s mid-week bounce back saw price rally as high as $3,950 in the last 24 hours.
The bulls have been attempting to hold their ground so far, although price slid slightly to a $3,912 press time price.
Source: Trading View
Could this also be a temporary move? The RSI signaled that the Ethereum native cryptocurrency could still embark on more downside in the coming days.
Meanwhile, the unexpected nature of the recent bullish resurgence triggered a surge in short liquidations. Roughly $187.27 million worth of shorts got liquidated in the last 24 hours.
In contrast, only $78.08 million longs got rekt during the same period.
Exploring the catalyst behind the latest ETH mid-week rally
The surprising mid-week bounce may be rooted in speculation, especially around Donald Trump.
Recent reports indicated that a company called World Liberty Financial, which is affiliated with Trump, recently embarked on a crypto buying spree.
World Liberty Financial reportedly acquired $5 million worth of ETH. Its total ETH holdings are reportedly worth over $55 million.
This acquisition may have contributed to improved sentiment, diverting from the bearish start earlier in the week. However, it was not the only ETH-related bullish news.
Ethereum ETFs have also been driving demand for the cryptocurrency, and perhaps even shielding it from more downside. ETFs maintained positive flows for the last eight days.
Source: Farside.co
Will ETH continue to rally or be subject to sell pressure? So far, the market has maintained higher exchange outflows than inflows in the last two days.
However, the last 24 hours saw exchange inflows almost matching outflows.
Source: CryptoQuant
ETH exchange flows underscore the possibility for sell pressure to overtake the bulls.
Also, historical concentration data revealed that ETH whales have been accumulating. Their balances went up from 59.39 million coins on the 9th of November to 60.57 million coins as of the 11th of December.
Source: IntoTheBlock
Read Ethereum’s [ETH] Price Prediction 2024–2025
While whales have been adding to their balances, ETH’s investor class had an overall decline in the last 30 days. Slight outflows were also observed in the retail segment.
This meant that ETH whales were less subject to the throes of market uncertainty than retail and institutional traders.
