Ethereum (ETH) has shed nearly 16% of its value this week due to Bitcoin’s (BTC) descent from $100K on Tuesday to a retest of $92K in the late New York session on Thursday. Despite this sudden collapse in BTC & other altcoins, whales seem to be taking advantage of this volatility to accumulate 25,000 ETH. What’s next? A market bottom and a rally or collapse in ETH’s value? Let’s explore.
Ethereum Price Today: ETH is up No data found for ethereum on 3 minutes ago%
Ethereum (ETH) price today trades at No data found for ethereum on 3 minutes ago as of No data found for ethereum on 3 minutes ago. Although the token showed strength at the end of 2024, it has dropped nearly 16% since Monday this week. Whales and top holders took advantage of this crash and accumulated roughly 25,000 ETH. From a daily high of No data found for ethereum on 3 minutes ago ETH price is down No data found for ethereum on 3 minutes ago% on January 10.
Ethereum Price Chart Today
Ethereum price chart today shows a recovery from $3,220 to roughly $3,260
*Ethereum price updated as of No data found for ethereum on 3 minutes ago.
Ethereum Whales Accumulate 25,000 ETH After Recent Crypto Market Crash
Data from Santiment shows that the supply of ETH held on exchanges dropped from 10.67 million on January 7 to $10.42 million today. Roughly 25,000 tokens were transferred off centralized platforms, which shows confidence and hints that long-term holders are forecasting a price rally. Interestingly, The same chart also shows top holders’ (other than exchanges) balance increased by 25,000, which is a clear sign of accumulation by whales
ETH Supply on Exchanges, Top Holder Balance
Generally, investors with more than $100,000 in capital are considered high net worth or whales. If transactions worth more than $100K spike after a rally, it can be seen as these whales looking to book profits. Hence, often, a spike in whale transaction count after a rally can be viewed as a sell signal. However, an uptick in such transfers after major crashes often indicates accumulation from these investors and markets a bottom.
During the late Thursday crash, whale transactions worth more than $100K and $1 million saw a significant increase, further adding credence to our notion of an accumulation from smart investors.
Ethereum Whales Buy the Dip
Is The Bottom In Yet?
With such strong evidence of smart money accumulation, retail investors must prepare for a potential reversal. This recovery rally and resumption of the bull run will occur if Bitcoin bottoms. As noted, the January 9 swing low at $91,151 could be the bottom. If BTC slides lower, with a bullish swing failure pattern at $90,835, it could signal that a reversal is imminent.
Hence, Ethereum could also be close to forming a stable bottom that could kickstart a bull rally.
Is Bitcon Bottom In? Most likely.
January 9’s swing low ($91,151) could be the bottom. If not, then a sweep of $90,835 with a bullish swing failure pattern could suggest that a bottom is imminent.
https://t.co/H2Spj0mvEM pic.twitter.com/ohZ0zmlIsB
— MAXPAIN (@Mangyek0) January 10, 2025
Ethereum Price Analysis and Strategic Targets For January 2025
The daily chart shows an inverse head-and-shoulder setup forming on Ethereum. This setup hints at a bullish reversal and the end of a downtrend or consolidation. It contains three distinctive bottom formations, the central one lower than the other two, denoting the head. While the one on either side of the head is termed the shoulders. Hence, the namesake.
In this case, the technical formation forecasts a 44% rally to $5,825, obtained by adding the head’s depth to the breakout point at $4,000. However, investors can expect the bull run to resume if Bitcoin ends the ongoing downtrend by forming a bottom on January 9 or 10. In such a scenario, Ethereum could go beyond $5,825 and potentially tag the $6,000 psychological level before January 2025 ends.
Some key support levels include $3,278, $3,029, $3,000 and $2,739.
While the inverse head-and-shoulder setup is bullish, it needs to finish forming even before a breakout can be considered. Hence, some key resistance levels that Ethereum price needs to overcome are $3,600, $3,843, $4,000.
Ethereum price prediction notes some strategic levels for January 2025 for investors to book profits: $4,500, $5,000, $5,500, $5,825 and $6,000.
ETH/USDT 1-day chart
On the other hand, a breakdown of the $3,029 support levels will invalidate the inverse head-and-shoulder setup mentioned above. Such a development could knock ETH down to $2,800 and lower levels.
In conclusion, despite Ethereum’s recent 16% drop, whales have taken advantage of the volatility to accumulate 25,000 ETH. Strong evidence suggests smart money accumulation which retail investors need to pay attention to and look for a potential reversal. The target for Ethereum in January 2025 includes a local top formation at $5,825 or $6,000.
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