Date: Sat, Jan 25, 2025, 05:30 AM GMT
The cryptocurrency market has undergone a significant correction after a major rally from November to mid-December. However, recent developments have injected renewed optimism into the space. The inauguration of Donald Trump has reignited positive momentum, with Bitcoin (BTC) recently reaching its all-time high of $109K. On Thursday, President Trump signed an executive order to create a national digital asset stockpile, further fueling positive sentiment across the market.
However, the altcoins rally is still on hold as Ethereum (ETH) continues to face bearish pressure, having failed to record any gains in the last 60 days.
However, recent large-scale accumulation is sparking optimism for a potential turnaround.
Major Accumulation by World Liberty Financial
According to Spotonchain, Ethereum has recently been the focus of significant buying activity by Trump’s World Liberty Financial, which reportedly spent $20 million acquiring 3,001 ETH and 95 WBTC just seven hours ago.
Over the past five days, the fund has invested a staggering $210.9 million, with $119.95 million used to purchase 35,995 ETH at an average price of $3,332. It also acquired $66.84 million worth of WBTC. Currently, the fund holds.
Adding to this bullish activity, the crypto analyst @ali_charts has reported that over 1.14 million ETH were purchased by whales in the last 48 hours.
Is A Breakout Looming?
Ethereum’s price action is forming a falling wedge pattern, often seen as a bullish reversal signal. After pulling back from its December 16 high of $4,109, ETH has consistently tested the wedge’s resistance and support lines.
Currently trading at $3,300, ETH is approaching the wedge’s upper resistance trendline, marked by a shaded area on the chart. A breakout above this level, followed by a move past $3,447, the upper range of this resistance box, could confirm the bullish potential of the wedge. If successful, ETH could target resistance levels at:
- $3,745
- $4,109
This would represent a potential upside of around 25% from its current price.
The Moving Average Convergence Divergence (MACD) indicator is turning bullish, with the histogram turning green and the signal line attempting to cross above the MACD line.
Final Thoughts
While Ethereum’s price remains under bearish pressure, the recent accumulation by World Liberty Financial, highlighted by Spotonchain, and whale activity signal growing confidence in ETH’s future potential. The falling wedge pattern suggests a breakout may be on the horizon, potentially leading to a rally toward $4,109 and beyond.
As Bitcoin dominates headlines with its all-time high, Ethereum’s fundamentals and accumulation activity position it as a strong contender for the next big move in the cryptocurrency market.
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