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Ethereum's Price Surge: Whales and ETFs Drive Recovery Towards $3,000

Coin WorldTuesday, Feb 4, 2025 12:38 pm ET

1min read

Ethereum's price has been on a rollercoaster ride recently, with a significant drop following Trump's announcement of tariffs, only to bounce back strongly. The recovery has been fueled by increased interest from large investors, known as "whales," and a surge in ETF volumes. As Ethereum's price approaches the crucial $3,000 level, analysts are speculating whether the current buying momentum can sustain and push the price higher.

ETF trading volumes have been a key indicator of Ethereum's resurgence. On February 3, Ethereum ETFs recorded a trading volume of $1.5 billion, a 20% increase from their previous record and the highest since their launch. BlackRock's ETHA product led the way with $736 million in trading volume, followed by Grayscale's converted ETHE fund at $415 million, and Fidelity's FETH at $155 million. In total, the trading volume for all U.S. spot Ethereum ETFs has reached close to $22 billion.

Concurrently, the volume of large trades has surged, with "whales" showing increased interest in Ethereum. According to data from IntoTheBlock, the volume of large trades jumped from $4.59 billion on February 1 to $23.6 billion by February 3. As whales focus more on Ethereum during its price recovery, we may see a significant increase in upward swings.

Ethereum's network capacity has also been boosted, with the first increase in gas limit since the transition to a proof-of-stake system in 2022. This change could act as a bullish catalyst for Ethereum's ongoing recovery.

As Ethereum's price attempts to break through the $3,000 level, it faces strong resistance from sellers. Currently priced at $2,788, Ethereum has risen by 3.8% in the last day. The trading pair ETH/USDT is nearing $3,000, a level that could prove challenging for investors. If Ethereum stays above this price, it could benefit buyers and potentially push the price to January's high of $3,500 or even up to $4,000. However, if the price continues to hold below the EMA20 line on the 1-hour chart

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