Ethereum Whales Trigger Buying Spree, $4000 Next?

Ethereum Price Forecast 2025: Can ETH Whales Push Past $4K?

Ethereum whales have taken advantage of the recent price dip, snapping up ETH as it dropped close to $3,000 on Monday. Following heavy selling pressure yesterday, Ethereum has begun to recover, climbing back above $3,200.

Additionally, Donald Trump’s DeFi venture, World Liberty Financial, made fresh ETH purchases earlier today, further increasing its holdings and signaling growing confidence in the asset.

World Liberty Financial Buys 3,247 ETH

On January 28, 2025, at 08:00 AM UTC, the DeFi project World Liberty Financial (WLFI), supported by the Trump family, made a notable purchase of 3,247 ETH at $3,080 per ETH, spending 10 million USDT. 

This move aligns with WLFI's strategy to diversify its $275 million portfolio, heavily focused on major cryptocurrencies. Currently, ETH accounts for 65% and BTC 25% of their investments, making up 90% of the total, with the remaining 10% spread across five altcoins.

Massive Ethereum Whale Transfer Spotted

A massive crypto transaction has been spotted! According to Whale Alert, 50,000 Ethereum ($159.5 million) was moved between unknown wallets. Such large-scale transfers often raise speculation about institutional activity, whale accumulation, or potential market moves in the near future.

Surge in Ethereum Mega Whales

Crypto analyst Ali Martinez recently highlighted on X that 13 mega whales, each holding more than 10,000 Ethereum ($ETH), have joined the network in the past 24 hours. This points to notable accumulation activity!

Potential Risks and Macro Factors Impacting Ethereum

According to Benjamin Cowen analysis, the One potential risk for Ethereum ($ETH) is if the Federal Reserve announces no quantitative easing (QE) this week. That could push ETH lower against the USD, possibly prompting the Fed to reverse course in March 2025, leading to a rapid recovery.

If ETH drops significantly, it might justify renewed money printing, which could drive ETH/BTC back up. Interestingly, it wasn’t "cool" to be bearish on ETH/BTC in 2022 when hype surrounded proof-of-stake (PoS) and its deflationary mechanics. Now, the sentiment has flipped, and it’s unpopular to think ETH/BTC could rally again.

Looking at past cycles, ETH/BTC hit bottom when QE began—something that hasn’t happened yet. If the Fed sticks to its stance against QE this week, ETH might take another hit before a potential policy reversal in March 2025.

While the exact path remains uncertain, this is a scenario worth considering, especially given ETH’s struggle to break past $4,000 over the last few years. Additionally, Ethereum saw capitulation events in April and August, coinciding with the Bank of Japan (BOJ) raising rates in March and July.

History suggests that ETH has hit capitulation lows a month after BOJ rate hikes. With the BOJ raising rates again last week, could we see another capitulation low in February or March? It’s something to keep an eye on.

What’s Next for Ethereum?

Ethereum's buy zone has held up once again, suggesting strong support around the $3,000-$3,200 range. While there could be slight downside pressure, a rebound towards $3,500-$3,600 seems likely if bullish momentum builds. A break above resistance could open the door for a rally toward $4,000 in the coming weeks. The recent accumulation of Ethereum by whales could act as a driving force, potentially sparking a rally for ETH price shortly.

Source: TradingView