Ethereum (ETH) has experienced a strong upward momentum recently, breaking above the key $3,762 level on December 2, marking its highest price since June 2024. In parallel, Ethereum whales have been actively accumulating ETH, spending a staggering $5.7 billion in just 20 days. This surge in whale activity follows the confirmation of SEC Chairman Gary Gensler’s exit in mid-November, boosting investor confidence and fueling expectations of further price appreciation.
Ethereum Price Analysis: A Strong Bullish Trend
On December 2, Ethereum’s price surpassed $3,762, a level not seen since June 2024, signaling robust bullish momentum. According to on-chain data, Ethereum whales have been buying ETH aggressively since the mid-November news of Gensler’s departure, with whale wallets showing consistent positive net inflows for the past 20 trading days.
ETH has surged approximately 26% from $3,015 on November 14 to a new 5-month peak of $3,746 by December 2. This performance has outpaced Bitcoin (BTC), whose price has stagnated below the $100,000 mark. Ethereum’s rise, coupled with Bitcoin’s declining market dominance, indicates a shift in investor sentiment towards altcoins.
Ethereum Whale Activity: $5.7B Surge in 20 Days
Following Gary Gensler’s exit from the SEC, Ethereum whale wallets have been on a buying spree, acquiring over 1.7 million ETH (worth $5.7 billion) in the past 20 days. The large inflows have been tracked by IntoTheBlock’s Large Holders’ Inflow metric, which monitors daily deposits and withdrawals of wallets holding at least 0.1% of total ETH supply (roughly 120,000 ETH or $43 million).
The most significant inflow occurred on November 14, the day Gensler’s departure was confirmed, when 2,570 ETH were deposited in a single day. Whale activity typically signals expectations of further price appreciation, and with ETH accumulating substantial demand, the potential for further price surges looks increasingly likely.
Ethereum Price Forecast: Will ETH Break $4,000 in December?
Technical Indicators Suggest a Potential $4,000 Breakout Ethereum’s price currently faces resistance around $3,800, a critical level that could trigger a move toward the $4,000 milestone. According to technical analysis, Ethereum is trading near the upper band of the Donchian Channels (DC), suggesting that a breakout above this resistance could set the stage for a price rally toward $4,000.
On the downside, immediate support is found at $3,387, in line with the midline of the DC, ensuring Ethereum’s bullish structure remains intact. The Bullish/Bearish Power (BBP) indicator, which measures buyer strength, is at a strong reading of 395.44, signaling continued buying pressure and accumulation by whales.
Ethereum Market Sentiment: Bitcoin Dominance Declines
The broader crypto market has shown a steady uptrend over the past month, with a series of bullish catalysts driving investor sentiment. As global inflation cooled in November and major central banks, including the U.S. Federal Reserve, cut interest rates, market confidence grew, prompting higher risk tolerance among traders.
During this period, Ethereum has significantly outperformed Bitcoin, with the latter’s market dominance (BTC.D) falling from 61% on November 21 to 56.6% at the time of writing. This drop in Bitcoin dominance, coupled with Ethereum’s price surge, suggests that investors are increasingly redirecting capital towards altcoins, particularly Ethereum.
Ethereum Price Prediction: Strong Bullish Momentum Ahead
In conclusion, Ethereum’s strong price action, backed by whale accumulation and a decline in Bitcoin dominance, suggests that ETH could be poised for a breakout above $4,000 in the coming weeks. The $5.7 billion in whale inflows over the past 20 days further confirm the bullish sentiment, with many expecting Ethereum to outperform Bitcoin as we move into December 2024.
If ETH manages to breach the $3,800 resistance level, a move toward $4,000 could be imminent, supported by ongoing whale activity and positive market dynamics. As Ethereum whales continue to accumulate, investors will likely continue to watch ETH closely for signs of a sustained rally.
Conclusion: Ethereum’s Bullish Outlook in December 2024
With whale activity on the rise and a promising technical outlook, Ethereum’s price could break new ground in the coming weeks. As investor confidence builds, particularly following the exit of SEC Chairman Gary Gensler, Ethereum is in a prime position to outperform Bitcoin and push toward the $4,000 mark by the end of 2024. Keep an eye on key resistance levels and whale flows to gauge whether Ethereum’s bullish trend will continue.
