Ethereum price seems to be showing signs of recovery after a sharp market drop. It has a good amount of whale activity signaling renewed accumulation.
Despite the turbulent period when it dropped more than 22.5%, Ethereum seems to stabilize around the $3,400 mark and interest from both institutional and retail investors has been growing anew.
The recent market turmoil led Ethereum to drop significantly in price, trading below key support levels. However, recent data turns out to be positive because the whales, large holders of ETH, have been removing their assets from exchanges, which signals movement towards accumulation.Â
According to analytics platform LookOnChain, ten newly created wallets withdrew almost 17,700 ETH, which was around $61.7 million, from Binance in a short time. This is during Ethereum’s rebound from a low of $3,100. The cryptocurrency found support close to the 200 Exponential Moving Average.
While Ethereum’s price has recently fallen under $3,500, it has stabilized since that point, and many are now predicting that the next significant support level will occur around $2,850.
Ethereum’s strength is also further bolstered by a significant increase in staking activity, with over 54.7 million ETH currently staked among more than 206,000 unique stakers. This long-term commitment, despite short-term price instability, speaks to increasing confidence in Ethereum’s prospects.
Ethereum’s bullish momentum. Such transactions include World Liberty Finance, a firm connected with former U.S. President Donald Trump, purchasing 759 ETH worth $2.6 million. Another area that’s witnessing significant growth is that of Ethereum exchange-traded funds (ETFs).
A total of $1.6 billion in inflows has been recorded in December, which is the best month for ETH ETFs since they were launched. BlackRock’s ETHA fund leads the charge, raking in $292 million in just a single day.
Moving forward, analysts expect strong prospects for Ethereum. For instance, some expect it to touch $8,800 in the next market cycle. More conservative estimates suggest a peak of around $6,000, such as those from asset manager VanEck. The long-term growth prospect is strengthened by the institutional appeal of Ethereum and its decentralized finance ecosystem which is still growing.
Also Read: Donald Trump’s WLFI Increases ETH Holdings During Market Crash
