Ethereum's Rising Sentiment: Whale Interest and ETF Confidence Shape Future Momentum

Ethereum pared some of its gains due to profit-booking. It hit a high of  $3,988 and is currently trading around $3855.

Decline in Staking and Profit-Taking

Recent data shows a significant decline in Ethereum staking, with over 490,000 ETH withdrawn in the past month. This trend reflects increased profit-taking among investors following a price surge, leading many to reallocate investments due to market volatility and indicating a shift in sentiment towards long-term staking.

Growing ETF Inflows

On December 16, 2024, Ethereum spot exchange-traded funds (ETFs) had a total net inflow of $51.1 million, marking the 16th straight day of positive inflows. This demonstrates growing confidence among investors in Ethereum as a regulated investment option, with contributions from BlackRock's ETHA ETF, Bitwise’s ETHW ETF, and Grayscale's ETH ETF.

Whale Activity on the Rise

In the past week, Ethereum (ETH) has seen notable increases in whale activity, with over 10,000 large transactions (over $100,000) recorded daily—the highest level since August 2024. This surge indicates that big investors are actively accumulating ETH, with one whale buying nearly 5,160 ETH during market dips at a significant cost.

Price Resistance and Support Levels

Bullish momentum may be achievable if Ethereum maintains prices above $3,400, with key near-term resistance at $4,100 and potential targets of $4,500 or even $5,000. Conversely, support levels around $3,820 and $3,400 may signal bearish momentum if breached.

Trading Strategies

Traders may consider buying on dips around $3,600, with a stop-loss set around $3,400 and target prices of either $4,093 or $4,865.