Ethereum price tested the $4,000 price level, which is a critical level for ETH as experts expect the price to surge to $5,000. This breakout has a strong basis on-chain fundamentals and whale accumulation, which mean that investors have high hopes of achieving another all-time high in the near future.
ETH Whale Accumulation Boosts Ethereum Price Momentum
As per on-chain metrics, the demand for Ethereum has gone up with some whales stacking the asset in their wallets.
According to the analysts at Santiment, a blockchain market research firm, 57.35% of the total Ethereum supply is in wallets that contain over 100,000 Ethereum tokens. These 104 wallets, in total, hold close to $333 billion ETH, which demonstrates their dominance in value changes.
On the other hand, the mid-tier wallets that hold between 100 and 100,000 ETH have dropped to the lowest point in history, which is 33.46% share of the total supply.
Also, wallets with balances of less than 100 ETH contain only 9.19%, the lowest in the last four years. This consolidation among the large shareholders is viewed by analysts as a positive sign.
Technical Patterns Signal Bullish Price Targets
This has happened as Ethereum’s recent price breakout is presenting a bullish “cup and handle” pattern in the weekly chart suggesting the continuation of the price rise. Crypto analyst Venturefounder believes this pattern could help ETH reach new prices and possibly retest the all-time high near $4,900.
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Based on technical analysis, the future targets are at $5,349, $6,457, and $7,238 in the first quarter of 2025.
Market trends also align with Ethereum price movement, as seen by its strength compared to Bitcoin and other major altcoins.
In the past month, the rise of Ethereum has been 27% while that of Bitcoin has been 18%. Furthermore, there has been more capital flow from Solana to Ethereum which has helped the latter gain more grounds, while Solana only had a 1.69% increase in the same period.
Ethereum Price Outpaces Bitcoin With ETH/BTC Strength
The strength of Ethereum relative to Bitcoin has been on the rise as the ETH/BTC pair holds steady. Experts also found some common issues between the recent market tendencies and the performance of Ethereum in 2016–2017.
Venturefounder has noted an inverse pattern on ETH/BTC where a bottom has been identified and a parabolic rally may follow.
Matthew Sigel, head of digital assets research at VanEck also seems to agree with this as he claims that the ETH/BTC pair is likely to surge in the future as it did in the year 2020.
The further consolidation of this pair also supports the notion of Ethereum’s upward trend, particularly with the institutional demand for Ethereum increasing.
Network Upgrades and Institutional Adoption Drive Optimism
Ethereum is continuously expanding with major advancements that brings substantial enhancement on scalability. The next upgrade EIP-4844 or proto-danksharding that is set to be implemented greatly improves data availability and throughput, preparing Ethereum to support dApps.
At the same time, institutional investment is on the rise where large companies like BlackRock and Fidelity have further bolstered their Ethereum token investments. This is a positive sign to indicate that there are more investors who are now utilizing Ethereum for institutional investment.
Moreover, Ethereum remains the most popular platform for DeFi and NFTs to this day. TVL in Ethereum-based protocols has hit $30 billion showing the blockchain’s role in deploying DeFi applications.
