- Ethereum’s surge past $4,000, fueled by institutional interest in spot ETH ETFs, signals growing independence from Bitcoin and long-term bullish sentiment.
- Crypto whales now control 57.35% of the ETH supply, the highest level since 2017, while smaller wallets are declining, pointing to a robust price breakout.
Ethereum price surged past $4,000, reigniting bullish sentiment among traders and analysts. The rally follows bitcoin’s sharp rise above $107,000, which has seemingly revitalized market sentiment. Many now believe that Ethereum could be heading towards a new all-time high (ATH) by the start of 2025.
Unlike in the past, Ethereum’s trajectory is no longer entirely tied to Bitcoin’s performance. Historically, these two leading tokens have often mirrored each other, as seen during the 2021 bull run. They have both dominated trading volumes and made highs in tandem. However, Ethereum’s current trading pattern suggests that the token may now be carving out its own history.
57.35% of ETH supply in big hands
Much of this new independence can be attributed to the launch of spot ETH ETFs, which gained traction following the recent US election results. Institutional interest in these ETFs has been considerable, with crypto whales leading the charge. Santiment Data reveals that whale wallets holding at least 100K ETH now control a staggering 57.35% of the total supply, a level not seen since 2017.
This change in holdings highlights a long-term bullish signal. As these large investors consolidate their positions, smaller portfolios shrink in proportion. Wallets holding between 100 and 100,000 ETH and those below 100 ETH dropped to 33.46% and 9.19% of supply, respectively.
Ethereum’s weekly chart reflects this bullish sentiment. A rise above the current resistance level of $4,068 could push the token into the final resistance zone between $4,800 and $4,900, paving the way for a potential retest of its all-time high (ATH). Furthermore, the Ichimoku cloud supports this outlook, with a bullish crossover indicating the possibility of an imminent price rise.
Ethereum aims for a breakout of the ATH at $5,000
Market analysts and traders are aligning their forecasts with this optimistic scenario. SmileyCapital, a trader on His bold prediction predicts that Ethereum will overtake Bitcoin in terms of market dominance. Similarly, trader McKenna highlighted the growth of “institutional narrative and FOMO” around spot Ethereum ETFs, predicting an increase in interest as we approach the first quarter of 2025.
Crypto analyst Wolf echoed these opinions, stating that Ethereum’s chart shows unparalleled explosive potential compared to other tokens. The enthusiasm is coming from historical price patterns, which suggest that Ethereum could replicate Bitcoin’s previous 60% surge and head towards a new ATH well above $5,000.
Intotheblock supports this bullish narrative, revealing that 7.2 million ETH was recently purchased just below $4,000. This level now serves as a critical support zone, likely stabilizing prices above this range. Historical patterns also show that Ethereum is at a similar stage as Bitcoin was during its meteoric rise earlier this quarter.
