- ETH’s recent rally is fueled by $187M in short liquidations and sustained whale accumulation, driving bullish momentum.
- ETF inflows and significant whale purchases signal strong institutional interest, positioning ETH for a potential push to $4K.
Following a recent Ethereum bull rally, a CNF update revealed that Ethereum bulls have unleashed an “inevitable rage pump” after multi-month accumulation. Currently, Ethereum’s (ETH) resurgence has surprised the market, defying expectations of further declines.
The unexpected ETH rally triggered a spike in short liquidations, with $187.27 million worth of shorts wiped out in 24 hours, compared to $78.08 million in liquidated longs. This surge in liquidations likely intensified buying momentum as bearish traders closed their positions.
However, technical indicators such as the RSI suggest ETH may face short-term downside risks, signaling caution for investors banking on sustained bullish momentum.
Whales Drive Accumulation Amid Mixed Exchange Flows
ETH whales have been steadily increasing their balances, growing holdings from 59.39 million coins in November to 60.57 million coins by December 11. Despite this, the broader investor class, including retail traders, experienced slight outflows over the past month.
Exchange flows highlight a delicate balance, with inflows recently catching up to outflows. While whales appear undeterred by market uncertainties, retail investors remain more cautious, leaving Ethereum’s trajectory to $4,000 uncertain.
The cryptocurrency surged to $3,950 midweek before settling at $3,912, supported by bullish activity from both whales and ETFs. Notably, World Liberty Financial, affiliated with Donald Trump, purchased $5 million worth of ETH, boosting its holdings to over $55 million.
Simultaneously, Ethereum ETFs maintained positive inflows for eight consecutive days, bolstering demand despite earlier bearish pressure.
According to CoinMarketCap data, Ethereum (ETH) is currently trading at $3,901.59, reflecting a 0.37% decrease in the past day but a 0.52% increase over the past week. ETH remains poised to push toward $4K.