Ethereum attracts large investors: signs of market recovery

After a recent drop of more than 15% due to the US Federal Reserve's decision to cut rates for 2025, Ethereum (ETH) is beginning to show upward momentum. Over the past 24 hours, its value has increased by 5.8%, and at the time of writing, the altcoin is trading at $3,473. This recovery was the result of active actions by large investors, who are taking advantage of the opportunity to purchase ETH at favorable prices in anticipation of further growth to the $4,000 mark.

Among the examples of such purchases, the World Liberty Finance project, associated with Donald Trump, recently purchased 759 ETH for $2.6 million. Such actions contribute to the strengthening of the market and confirm the sentiment of investors counting on further growth of the cryptocurrency.

At the same time, a significant outflow of Ethereum is observed on the exchanges. Asset owners are actively withdrawing their funds, which indicates the transition of the market to the accumulation phase. According to the analytics platform LookOnChain, ten new wallets have withdrawn a total of 17,698 ETH, valued at approximately $61.66 million, from the Binance exchange in recent days. Such actions often precede an increase in the asset’s price, as the availability of the cryptocurrency on exchanges decreases.

Ethereum-focused exchange-traded funds have also been showing a steady inflow of funds. Over the past seven weeks, investment volumes in such funds have been increasing, reaching record levels in December. In this month alone, $1.6 billion was attracted to the ETH-ETF, which highlights the high interest of institutional investors.

Long-term forecasts for Ethereum remain positive. Experts expect the altcoin to reach $8,800 next year, while VanEck expects the cycle peak to be at $6,000. These estimates are based on growing interest in the blockchain technology that underpins the asset and its applications in various areas, including decentralized finance and NFTs.