Ethereum (ETH) Surpasses $4,000: Whale Activity and Liquidity Tightening Drive Bullish Surge
Ethereum (ETH) has climbed above the $4,000 mark for the first time since December 2024, signaling strong bullish momentum. This rise is backed by a sharp drop in exchange reserves and growing institutional demand.
Key Points:
Exchange Reserves Hit Record Lows: CryptoQuant data shows just 18.8 million ETH remain on centralized exchanges, the lowest since 2016. This decline points to investors moving funds off exchanges, creating a supply squeeze.
Institutional Buying Spree: In the last month, institutions and whales have acquired over 1.035 million ETH, worth roughly $4.17 billion. This accumulation coincided with ETH’s jump from $2,600 to above $4,000, highlighting strong confidence from major players.
Technical Breakout: ETH broke through the $3,860 resistance level, pushing prices to $4,017 — a 14.87% gain for the week. The 50, 100, and 200-week Simple Moving Averages (SMAs) are positioned below the price, supporting the uptrend.
Outlook:
Holding above the $3,860 support could open the way for ETH to challenge its all-time highs around $4,800–$4,900. However, traders should watch for possible pullbacks as the Relative Strength Index (RSI) nears overbought levels on shorter timeframes.
In short, Ethereum’s recent gains are fueled by shrinking liquidity and rising institutional interest, paving the path for new potential highs.
Reminder: Always perform your own research and assess your risk before making any investment decisions.
