Ethereum (ETH) has seen a historic breakthrough above the $4,000 mark, the highest level since December 2024, driven by strong buying momentum and strategic moves from major investors (whales). This shift reflects a structural change in market dynamics and raises questions about future prices amid declining liquidity and increasing demand.
📉 Declining liquidity: An indicator of a potential supply shock
Chain data indicates a gradual decline in Ethereum reserves on trading platforms, meaning that investors are withdrawing their coins and holding them in private wallets. This behavior reflects a long-term holding intention, reducing the liquidity available for spot trading, which prepares the market for a supply shock if demand continues to rise.
🐋 Whale Movements: Insights into Intentions
Massive wallets have started to move after a period of inactivity, including wallets linked to the Ethereum Foundation.
Sell-offs and opening leveraged short positions indicate mixed expectations among whales.
Transactions exceeding one million dollars have significantly increased, reflecting unprecedented market activity.
📈 Technical Analysis: Critical Breakouts and Rising Momentum
Breaking the $3,860 barrier pushed the price to $4,017, with a weekly increase of 14.87%.
The 50, 100, and 200-week moving averages support the bullish trend, with strong support at $2,726.
If the price maintains a level above $3,860 at the weekly close, the next target levels will be between $4,800 – $4,900.
🏦 Institutions enter the scene
Sharplink Gaming has joined the list of companies using Ethereum in their treasury, enhancing institutional confidence in the digital asset and adding a new layer of non-speculative demand.
💡 Summary and Recommendations
The market is witnessing a shift from short-term trading to long-term holding, driven by supply shortages and increased demand from DeFi and RWA.
Whale movements indicate strategic repositioning, calling for caution against sudden volatility.
Maintaining the price above $4,000 will be key to building a foundation towards new all-time highs.
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