Ethereum (ETH) Price Rebounds from Crucial Support Level amid Low Demand from Whale Investors

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As a crypto investor, I’ve noticed a surge of optimism within the altcoin market, particularly Ethereum (ETH), over the past day. After dipping below $3K on Monday, it has bounced back more than 8%, currently trading at approximately $3,177. This rebound comes in response to Bitcoin‘s (BTC) impressive recovery within the same period. Bitcoin, which had a 24-hour volatility of 6.0%, is now trading at around $96,306. The altcoin industry’s market cap has increased significantly, with Ethereum’s alone reaching $387.65B and a 24-hour volume of $36.07B. Similarly, Bitcoin’s market cap stands at $1.91T, with a 24-hour volume of $70.53B.

On Monday, the large-cap cryptocurrency, valued at approximately $383 billion when all shares are taken into account and with an average 24-hour trading volume of around $40 billion, ended the day showing a Doji candlestick, potentially indicating an upcoming bullish recovery. Additionally, Ethereum’s price has been constructing a bullish trend in its daily chart.

Moreover, the digital currency alternative has managed to bounce back from its 50-day Moving Average (MA), hinting at a possible surge towards its record high. Notably, the shift in Bitcoin’s dominance over a larger time period suggests that the long-awaited altcoin rally, or ‘altseason’, could be imminent within the next few months.

Ethereum Whales Remain Skeptical

Over the last several days, significant crypto market fluctuations haven’t seemed to stir much action from Ethereum’s “whale” investors. Based on recent analysis of blockchain data, there’s been a drop of approximately 9.32% in the number of new active addresses within the past week, with activity now averaging around 100,000.

Whale investors’ interest in purchasing Ether has stayed relatively low since March 2024, even after the green light for spot ETH ETFs was given. As per data analysis from Coinglass, there’s been a significant rise of over 400,000 Ethereum units, approximately 15.8 million in total, on centralized exchanges since January 2025.

Yesterday (Monday), U.S. Ether exchange-traded funds (ETFs) saw their fourth straight day of withdrawals, with approximately $39 million being pulled out. As a result, the total net inflow now stands at around $2.4 billion and the cumulative net assets are valued at $10.8 billion.

Significantly, the ETHA fund managed by BlackRock was the only one to see a net cash influx of approximately $12.9 million on Monday, and it now has approximately $3.4 billion in total assets.

Bigger Picture

In the realm of Web3, the Ethereum network continues to reign supreme, boasting a staggering $63 billion worth of assets locked and an impressive $113 billion market capitalization for stablecoins. The progress made in Ethereum’s layer two (L2) scaling technologies has been instrumental in attracting a surge of on-chain activities over the past year, particularly from institutional investors.

To add on, a significant portion of the crypto assets held by President-elect Donald Trump is invested in Ether and various ERC20 tokens.

As institutional investors increasingly embrace digital assets worldwide, it’s likely that the price of Ethereum will experience significant, possibly exponential growth due to its widespread acceptance.

Developments on the Ethereum network, such as updates and enhancements, have significantly expanded the practical applications of Ether in the real world.

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2025-01-14 15:21