ETH Price Analysis and Forecast: Could ETH Price Hit $5K Amid This Bulls' Participation?

Ethereum (ETH) has struggled between the $4K and $2K levels over a wider time frame in 2024. The token has attempted to overcome the $4K level many times

After hitting all-time highs of over $4,100 in early December, the Ethereum price has faced resistance at this level. As a result, the token has seen a volatile movement within a limited range.

However, an interesting development has been the increase in Whale accumulation and ETH ETF inflow. This activity could potentially trigger a bullish rally.

An Analysis of ETH ETF Inflow and Whale Accumulation

Despite seeing outflows, Ethereum ETFs saw inflows of over $2.5 Billion. These inflows come from the peak price of ETH, which was around $4,100 last week.

As prices fluctuated, these large inflows signaled strong investor confidence. Notably, outflows showed the most significant declines in December, with $49.2 Million and $75.1 Million.

The Nexo-associated whale's recent activity on Binance brought significant ETH movements to light. Recently, the whale sent 4,946 ETH, valued at about $17.2 Million.

This massive transfer fits into a larger trend seen since December 2. At that time, 114,262 ETH worth approximately $423.3 Million were transferred to Binance at an average price of $3,705.

Could ETH Price Hit $5K Amid This Bulls’ Participation?

At the time of writing, the Ethereum price was trading at $3,423.00, down 2.04% over the past 24 hours. The market capitalization was $412.97 Billion, and the 24-hour trading volume was $18.19 Billion.

The ETH price has been fluctuating between the 20-day EMA and 200-day EMA. But it managed to hold the 200-day EMA and headed towards the 20-day EMA.

If the Ethereum price crosses the 20-day EMA, buying momentum can be expected. In this bull run, the momentum can be disturbed near the $4K mark.

Once the price crosses the major resistance zone of $4K, it can reach the $5K mark. On the other hand, if the price drops below the 200-day EMA, a scenario of profit booking can be created. If it sustains below the support level of $3K, sellers may dominate ahead.

This article is solely for informational purposes and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not liable for any financial loss that may arise from investing in or trading. Please conduct your own research before making any financial decisions.