Ethereum Price Surges After Dip, As Institutional Interest Rises

• Ethereum price recently surged over 10% after hitting a low of $2,920.
• Institutional investors like BlackRock have increased their holdings, adding 4,240 ETH.
• Ethereum reserves on CEX have fallen sharply, signaling a potential supply shock.

Ethereum (ETH) struggled to reclaim its all-time high in 2024, even as many of its rivals surpassed their previous records. A rally in December pushed ETH to a yearly peak of $4,107, which still was 18% shy of its historic high.

However, the Ethereum price experienced a notable lack of bullish momentum after mid-December. At the start of 2025, there were hopes of a resurgence. These hopes increased, especially with Bitcoin hitting $100K and ETH rising to $3,749.

Yet, this optimism was short-lived as bearish pressure quickly took over, following the bearish trend of December 2024. The recent decline has even raised concerns. With this, the Ethereum price dipped below its 200-day EMA and reached $2,920.

This drop was primarily fueled by panicked investors eager to secure profits, which led to widespread sell-offs. However, institutional investors, like BlackRock and large whales, capitalized on this by accumulating more ETH.

On January 13th, many market experts anticipated a continued downtrend. This ETH is possibly heading toward the $2,600 support level. However, a liquidity sweep quickly reversed the trend, triggering a strong rebound as whales and institutions rushed to buy the dip.

Ethereum crypto’s balance on centralized exchanges (CEX) dropped significantly. That further indicated a positive shift in market dynamics.

The Ethereum price has surged over 10% from its recent low, trading at $3,233. The 200-day EMA supported it, and bullish momentum pointed to a rise in the 20- and 50-day EMA bands.

Whales and Firms Accumulation Continues In Ethereum

Recent significant buying activity in ETH has driven its price upward. A clear liquidity sweep was visible on the daily chart.

One of the major buyers is BlackRock. It took advantage of the dip by adding 4,240 ETH, valued at $13.57 Million, to its holdings. This brought the firm’s total Ethereum crypto holdings to a massive 1,118,542 ETH.

Meanwhile, whale activity was also noted with a transfer of 22,922 ETH, worth $70.6 Million. This transaction happened from Coinbase to an unknown wallet. These large-scale purchases have contributed to a noticeable decline in Ethereum’s balance on centralized exchanges (CEX).

Ethereum reserves on CEX have fallen sharply. It dipped from around 30 million ETH in early 2022 to just over 19.5 million ETH by January 2025. This reduction aligned with periods of heightened price volatility.

Historically, lower exchange reserves often lead to price increases. This happens due to the reduced available supply and increased buying pressure.

As CEX reserves continue to dwindle, a potential supply shock could be on the horizon. That could push the Ethereum price even higher.

This trend is a bullish signal. Furthermore, it could encourage investors to accumulate Ethereum crypto before a possible price surge driven by the shrinking supply.

Analysts, such as CryptoELITES, are optimistic about the outlook, predicting a strong rally. He anticipated that the Ethereum price could break out of its current symmetrical triangle pattern. This could potentially push the price toward $7,000.

Additionally, there has been increased interest in Ethereum crypto from high-profile figures like Donald Trump. With his crypto project, World Liberty Financial recently exchanged WBTC for ETH tokens.

This move suggested that Trump’s return could boost the broader cryptocurrency sector as the inauguration approaches. Bitcoin and Ethereum may benefit from this political catalyst, with prices potentially rallying in anticipation.

A Look At Ethereum Price On Daily Chart

Amidst the ongoing whale accumulation, the Ethereum price has steadily exceeded the critical 200-day EMA support level. Market momentum has begun to pick up. Rising histograms on both the AO and the MACD indicators evidenced that.

Moreover, the CMF has started to increase, reaching 0.02 at the time of writing. At the same time, the RSI has made a U-turn, heading toward overbought territory. If optimism continues to build, the Ethereum crypto may break through key resistance levels.

According to analyst Poseidon, the price action observed over the last four years suggests a consolidation phase. He believes the longer the consolidation persists, the greater the potential for a significant price rise.

A mix of bullish technical indicators and several potential catalysts is on the horizon. With those, it is a crucial time to monitor the market closely. However, investors need to conduct their research, remain cautious, and avoid falling victim to FOMO.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.