Ethereum Rockets Ahead: Whale Activity, ETF Inflows, and World Liberty Financial's Bold Investment Drive Market Optimism

Ethereum is gaining momentum, trading at $3,918 after hitting a high of $3,988 yesterday on the back of positive sentiment.

World Liberty Financial's Big Investments

World Liberty Financial (WLFI), a cryptocurrency company linked to U.S. President-elect Donald Trump, has made significant purchases of Ethereum (ETH) and other cryptocurrencies. In December 2024, they invested almost $45 million in total, with $30 million going directly into Ethereum.

Impressive Inflows into Ethereum ETFs

In December 2024, Ethereum (ETH) ETFs experienced remarkable inflows, indicating a strong trend in the cryptocurrency market. During the week of December 9-13, these ETFs recorded their highest weekly inflow ever, amounting to about $855 million. BlackRock's iShares Ethereum Trust was a major contributor, attracting around $523 million, reflecting increasing confidence from large investors. This week marked the 16th consecutive week of inflows for Ethereum ETFs, showcasing ongoing demand for the cryptocurrency. Since their launch in July 2024, total inflows into Ethereum ETFs have exceeded $3.7 billion, highlighting significant interest in digital assets.

Notable Whale Activity in Ethereum

Recently, notable whale activity has been observed in Ethereum (ETH), particularly as prices hover around the $4,000 mark. Large transactions surged, with weekly volumes increasing over 300% to around $17.15 billion, before settling at about $7 billion. One prominent whale bought 1,800 ETH for about $7 million, bringing their total investments to nearly $99 million, demonstrating strong confidence in Ethereum’s future. Overall, since mid-November, whales have spent approximately $5.7 billion on Ethereum, indicating robust accumulation as they expect further price increases.

Bullish Momentum and Price Resistance Levels

Bullish momentum may be achievable if Ethereum maintains prices above $3,400. Key near-term resistance is at $4,100, with potential upward targets of $4,500, $4,866 (the all-time high), or even $5,000. Conversely, immediate support levels are around $3,820, $3,696, and $3,400. A drop below $3,400 could confirm continued bearish momentum, potentially leading to declines toward $3,200, $3,000, $2,770, $2,500, or $2,300. A breach below $2,000 might see Ethereum fall to $1,800.

Trading Strategies for Optimistic Investors

Traders may consider buying on dips around $3,600, with a stop-loss set around $3,400 and a target price of either $4,093 or $4,865.