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Ethereum: 2 major factors that could take ETH back to $4K
The cryptocurrency market has been in a state of flux lately, with most assets experiencing significant price swings. However, Ethereum (ETH) seems to be bucking this trend, as it has regained its bullish momentum. As a result, traders are now looking at the prospects of the cryptocurrency reaching $4,000 again.
In a surprising turn of events, ETH bulls have resumed their dominance, with the cryptocurrency’s mid-week bounce back seeing prices rally as high as $3,950 in the last 24 hours. While this latest price action has seen ETH slide slightly to a $3,912 press time price, it is clear that the asset’s bulls are not giving up just yet.
ETH’s recent rebound can be attributed to two major factors: speculation surrounding Donald Trump and positive inflows from Ethereum ETFs.
Firstly, World Liberty Financial, an organization affiliated with former US President Donald Trump, has reportedly acquired $5 million worth of ETH. This acquisition has contributed significantly to the improved sentiment in the market, as investors begin to buy into the narrative that Trump-related organizations are backing this cryptocurrency. As a result, ETH’s price has seen a significant uptick.
Secondly, Ethereum ETFs have been driving demand for the cryptocurrency. According to recent data, these ETFs have maintained positive flows for eight consecutive days. This inflow of capital is expected to continue, providing much-needed support to ETH’s price.
It remains to be seen whether this bullish momentum can be sustained in the long term. Some indicators suggest that a potential sell-off may occur, with exchange outflows almost matching inflows over the last two days. Additionally, historical concentration data reveals that whales have been accumulating ETH, but retail and institutional traders have been experiencing net withdrawals.
Despite these factors, many analysts believe that the cryptocurrency’s whales will continue to drive demand, supporting its price and potentially leading it back up to $4,000 or higher.
Source: ambcrypto.com
