The overall supply of Ethereum on centralized exchanges has declined by over 800K units since the beginning of December fueled by US spot Ether ETFs.
After experiencing a significant resistance level of around $4,050, Ethereum (ETH) price has retraced more than 15 percent in the last two weeks to trade at about $3,381 on Friday, December 27, during the mid-London session. The large-cap altcoin, with a fully diluted valuation of about $407 billion, registered the worst weekly losses since the re-election of President-elect Donald Trump in the United States during the past two weeks.
In the daily time frame, Ethereum price has been forming a bearish continuation pattern, which could trigger a 10 percent drop toward the support level of about $3K in the near term. Moreover, Ethereum price has consistently closed below the 50-day Moving Average (MA), amid the ongoing crypto correction.
With Ethereum’s fear and greed index at about 57 percent, which reveals existing greed from traders, further correction is highly likely in the near term. Nonetheless, Ethereum price has been forming a macro rising trend in the long haul, thus indicating a bullish first quarter of 2025.
Moreover, the ETH/BTC pair has been forming a potential bullish pattern, after being trapped in a bearish trend in the past three years. Additionally, Ethereum’s price recently broke out of a multi-year consolidation after closing on a feeling logarithmic trend.
As a result, it is prudent to keep a close watch on a possible bullish continuation pattern toward $5K in the near term.
#Ethereum is about to explode!💥 pic.twitter.com/rfpUnG3dQl
— Crypto Rover (@rovercrc) December 26, 2024
Ethereum Whales Aggressively Accumulates
According to on-chain data analysis, the overall supply of Ether on centralized exchanges has declined by more than 450K in the past four weeks to hover about 15.39 million at the time of this writing. Remarkably, the demand for Ethereum has experienced a sharp increase amid the rising calls for a parabolic altseason.
The US spot Ether ETFs have been the biggest buyers of Ethereum in the recent past in addition to individual whale investors.
According to the latest market data, the US spot Ether ETFs have registered a cumulative total net inflow of about $2.63 billion, thus holding total net assets of over $12 billion. Led by Fidelity’s FETH and BlackRock’s ETHA, the US spot Ether ETFs registered a daily net cash inflow of about $117 million.
Worth noting that none of the US spot Ether ETF issuers registered a net cash outflow on Thursday, signaling bullish sentiment from long-term investors. The rising demand for Ether from institutional investors has coincided with the notable cash inflows to the ETH Futures Open Interest (OI), which hovers around $23 billion at the time of this writing, the highest since the inception of Ethereum.
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