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Ethereum (ETH) Price Rebounds from Crucial Support Level amid Low Demand from Whale Investors
01/14/2025 19:06
The net outflow from the US spot Ethereum ETFs on Monday was about $39 million amid slow Ether network growth.
Key Notes
- Ethereum price against Bitcoin has been forming a rebound pattern, thus suggesting the onset of the next parabolic phase of altseason soon.
- The supply of Ether on CEXes has not dropped in the past year compared to Bitcoin’s in the same period.
The altcoin industry, led by Ethereum ETH $3 211 24h volatility: 5.4% Market cap: $387.65 B Vol. 24h: $36.38 B , has regained significant bullish sentiment following the impressive Bitcoin BTC $96 408 24h volatility: 6.5% Market cap: $1.91 T Vol. 24h: $70.96 B rebound in the past 24 hours. After teasing below $3K on Monday, Ethereum price has rebounded more than 8% in the past 24 hours to trade at about $3,177 at the time of this writing.
The large-cap altcoin, with a fully diluted valuation of about $383 billion and a 24-hour average traded volume of around $40 billion, closed Monday with a Doji candlestick, signaling a possible bullish rebound in the near term. Moreover, Ethereum’s price has been forming a bullish continuation pattern in the daily time frame.
Additionally, the altcoin has successfully rebounded from the 50-day Moving Average (MA) in preparation for a potential rebound towards the all-time high. Already, the reversal of Bitcoin dominance in the macro time frame has signaled the onset of the much-anticipated altseason in the coming months.
Ethereum Whales Remain Skeptical
Amid the heightened crypto volatility, Ethereum whales have remained less active in the past few days. According to on-chain data analysis, the number of new active addresses has declined by 9.32% in the past week to hover around 100K.
The demand for Ether by whale investors has remained low since March 2024, despite the approval of spot ETH ETFs. According to on-chain data analysis provided by Coinglass, the number of ETH supplies on centralized exchanges has increased by more than 400k Ethereum units to around 15.8 million since the calendar flipped in January 2025.
Meanwhile, the US spot Ether ETFs registered the fourth consecutive day of cash outflow on Monday. According to the latest market data, the US spot Ether ETFs registered a net cash outflow of about $39 million on Monday, thus currently having a total net inflow of about $2.4 billion and cumulative net assets of $10.8B.
Notably, only BlackRock’s ETHA registered a net cash inflow of about $12.9 million on Monday and currently holds about $3.4 billion in net assets.
Bigger Picture
The Ethereum network remains the undisputed leader in the Web3 sector, with more than $63 billion in total value locked and over $113 billion in stablecoins market cap. The notable development of Ethereum’s layer two (L2) scaling solutions bags helped the Ether ecosystem attract more on-chain activities in the last year, led by institutional investors.
Furthermore, the US president-elect Donald Trump holds a huge amount of his crypto portfolio in Ether and its related ERC20 tokens.
With the ongoing mainstream adoption of digital assets around the world, led by institutional investors, Ethereum price is well positioned to rally exponentially ahead.
The major Ethereum developments, including network upgrades, have helped increase the overall utility of Ether to real-world use cases.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
