Ethereum eyes $4k as whales, ETFs fuel year-end rally

Source: CryptoNewsNet Original Title: Ethereum eyes $4k as whales, ETFs fuel year-end rally Original Link: Ethereum has outperformed Bitcoin and several altcoins as sentiment improves ahead of the Federal Open Market Committee interest rate decision, with whales and corporates ramping up accumulation and futures leverage.

U.S. spot Ethereum ETFs have flipped back to net inflows, signaling returning institutional demand and helping sustain the current uptrend despite recent volatility.

Market Momentum

The price movement appeared driven by purchasing activity from large-scale investors, while corporate and institutional entities have expanded their holdings. Market analysts are assessing whether the rally can maintain momentum through December, with historical performance data showing mixed results though recent trends indicate positive sentiment.

CoinGlass data indicates Ethereum has delivered positive average returns in December since 2016. The cryptocurrency has registered gains through early December this year, reflecting sustained trader activity.

Whale Accumulation & Leverage

On-chain metrics show large holders, commonly referred to as whales, accumulated significant quantities of the cryptocurrency over the past month. The accumulation pattern suggests long-term confidence among major investors.

Some large investors have opened substantial leveraged positions, indicating confidence in potential price appreciation. These positions include liquidation levels set below current market prices, meaning a significant price decline would trigger automatic position closures.

Key Resistance Levels

Analysts note that a clean break above key resistance is needed to extend the rally toward $4,000. Rejection at that threshold could result in a pullback if leveraged longs get squeezed. Market participants continue to monitor trading volumes and institutional flows as indicators of near-term price direction.