Ethereum continues to demonstrate resilience as its price climbed to $2,903 on November 25, marking a 2% increase in just 24 hours. The second-largest cryptocurrency has maintained its position above the critical $2,900 level, attracting institutional investments back into the market.
On November 24, US spot Ethereum exchange-traded funds (ETFs) registered impressive net inflows totaling $96.67 million, with BlackRock significantly contributing $92.6 million. This influx ended two weeks of outflows, signaling renewed institutional interest following an eight-day stretch of net withdrawals.
This positive momentum for the Ethereum ETF market coincided with Bitcoin spot ETFs that attracted $129 million in net inflows on the same day, demonstrating a broader recovery in cryptocurrency investments.
Recent notable purchases in the Ethereum ecosystem include large investor BitMine, which added an impressive 69,822 ETH to its holdings last week, valued at over $200 million. After this acquisition, BitMine’s ETH stash has grown to approximately 3.63 million ETH, accounting for around 3% of the total supply.
Whale Activity and Market Sentiment
In addition to institutional inflows, whale wallets, defined as those holding between 10,000 to 100,000 ETH, accumulated a remarkable 440,000 ETH last week, pushing prices above their average cost basis. Yet, smaller whale wallets, specifically those with 1,000 to 10,000 ETH, have displayed a contrasting trend, distributing 100,000 ETH within the same timeframe, while wallets holding between 100 to 1,000 ETH sold off 120,000 ETH.
Despite these mixed signals from the whale sector, Ethereum futures experienced notable activity, with a net outflow of $4.31 billion over the past week being partially offset by $735.46 million in inflows in the last three days. This indicates a slight resurgence of interest in leveraged positions within the derivatives market.
The broader crypto market also reflected positive changes, with a collective gain of 1.24% as uncertainty subsided, resulting in price increases for Bitcoin, Solana, XRP, and Dogecoin.
Rising Rate Cut Expectations
Adding to the bullish sentiment, expectations regarding a potential rate cut by the Federal Reserve increased markedly last week. Odds for a December rate reduction surged from approximately 30% to over 80%, according to the CME FedWatch tool data.
Currently, Ethereum’s trading range has fluctuated between $2,700 and $3,300, suggesting a period of consolidation as traders keep a close eye on the $3,000 resistance level.
Technical indicators also reflect potential upward momentum. The MACD indicator has crossed above the signal line, and the histogram has turned positive, implying the possibility of a bullish shift. With the RSI lingering near the neutral mark of 50, a move above this threshold could signal increased buying pressure, while a drop below the $2,700 support could indicate further downside risks.
In terms of liquidations, Ethereum saw a total of $80.8 million in futures liquidations over the past 24 hours, with $51.3 million attributed to short positions. As ETH continues testing the upper boundary of its descending channel, a decisive move above the $3,100 resistance could catalyze a rally towards the 20-day Exponential Moving Average.
Overall, with significant institutional interest and whale activity driving price movements, Ethereum is poised for further developments in the weeks to come as traders remain alert to macroeconomic changes and technical patterns.
