- Trump-backed WLFI buys millions in Ethereum amid rising institutional demand.
- Ethereum approaches $4,000 resistance as bullish momentum builds steadily.
- Stablecoin regulation boosts ETH’s appeal for corporate treasury strategies.
Institutional interest in Ethereum has intensified, with World Liberty Financial accelerating its buying spree. The firm, reportedly backed by President Donald Trump, has taken bold steps by allocating tens of millions toward ETH accumulation as the cryptocurrency approaches a crucial breakout point.
An on-chain analysis shows that a wallet associated with WLFI was used to purchase 6,145 ETH at an average of $3,743, totalling $23 million. Within the past week, the company has transferred $36 million to three addresses, purchasing more than 10,013 ETH. Such bulk buying has occurred as Ethereum continues to rally beyond the 3K mark.
Other institutions have also planted renewed confidence in Ethereum besides WLFI. Since the middle of May, U.S. spot Ether ETFs, headed by the BlackRock ETHA, have reported net inflows of more than $5 billion.
With the constant demand, Ethereum is also gaining increasing popularity as a treasury component of large companies and funds.
Also Read: Ripple Exec Warns: Stablecoin Boom Is Not Just a Tech Trend, It’s Risky Business
Ethereum’s Network Strength and Market Indicators Fuel Institutional Optimism
Numerous on-chain fundamentals fuel Ethereum. The network continues to be the main center of real-world asset tokenization, powered by the increasingly popular, fast-growing stablecoins.
According to the DeFiLlama data, Ethereum’s total value locked has grown to $83 billion, whereas the market cap of its stablecoins has reached $130 billion.
In January this year, the newly signed GENIUS Act brought regulatory certainty to the use of stablecoins, continuing to support Ethereum as the leader of the financial system.
Simultaneously, the ETH/BTC market has created a macro higher high and higher low to imply a change to Ethereum’s upside streak since September 2022.
Technically, Ethereum is currently being tested in a key resistance area around the mark of 4,000 dollars. This became a potent ceiling in the past, with the price being rejected at this level many times since 2021.
A resolution break (up) can unlock the possibility of a movement toward its old all-time high price.
Bulls are also receiving an advantage in terms of momentum indicators, as the weekly MACD is turning positive while the RSI approaches the upper range of 70, signaling an overbought condition.
Nevertheless, price action is facing the top of the ascending channel, which indicates the possible short-term correction in case Ethereum does not climb to close above the $4,000 mark.
Source; Tradingview
Conclusion
Ethereum’s push toward $4,000 is being closely watched, with WLFI’s aggressive purchases signaling strong institutional confidence. A confirmed breakout above this resistance level could trigger a significant price surge in the coming weeks.
Also Read: Cardano Gains Strong Market Traction as ADA Approaches Potential Breakout Zone
