As Ethereum (ETH) continues to navigate through the nuances of the volatile cryptocurrency market, it seems to have found a formidable ally in World Liberty Financial (WLFI), a decentralized finance (DeFi) platform. WLFI, intriguingly reported to have links to U.S. President Donald Trump, has caused a stir in the crypto realm, purchasing a whopping $48 million worth of ETH just hours before Trump’s inauguration ceremony.
This strategic acquisition comes at a pivotal time for Ethereum, which has been battling a period of underwhelming performance. With WLFI’s significant buying spree, the trajectory of the cryptocurrency could be poised for a significant turning point.
At the time of writing, Ethereum is trading at $3,299.17. Although this reflects a minor 24-hour loss of 0.65%, the cryptocurrency has seen a weekly gain of 2.8%. This upward trend suggests a rising tide of investor optimism, despite the recent underperformance.
To gain a better understanding of Ethereum’s potential trajectory, Finbold analyzed market trends and utilized insights from OpenAI’s ChatGPT-4o model. Interestingly, Finbold’s research reveals that ChatGPT is the most searched AI tool on Google, making its insights particularly consequential.
The AI model projects that Ethereum could experience an upward swing, potentially reaching $3,750 by the end of Q1 2025. However, amidst macroeconomic uncertainties and potential liquidity constraints, the price may also decrease, potentially retreating to $3,000.
The recent momentum of Ethereum is being largely driven by World Liberty Financial. On January 20, WLFI acquired 14,403 ETH, which is estimated to be worth $48 million, significantly bolstering its total holdings to 58,853 ETH. This acquisition spree was not limited to Ethereum; WLFI also purchased $109 million in other digital currencies, including 177.26 Wrapped Bitcoin (WBTC).
In a move that signals long-term commitment to the Ethereum ecosystem, WLFI staked nearly 5,000 ETH, valued at over $15 million, through Lido.
However, despite WLFI’s aggressive buying spree, Ethereum’s derivatives data presents a mixed bag. While long/short ratios on platforms like Binance suggest robust bullish sentiment, trading volume has seen a decline. Additionally, liquidations over the past 24 hours reflect a market that remains cautious, favoring a reset in overleveraged positions.
For Ethereum to maintain its bullish momentum, higher volumes and broader market participation are needed. Technical analysis also suggests a bullish outlook, with Ethereum forming an inverse head-and-shoulders pattern, a classic signal for a potential breakout.
In light of these factors, the AI models predict that Ethereum could reach $3,750 by the end of Q1 2025, provided that WLFI’s sustained market activity continues. However, in a bearish scenario, Ethereum could fall back to $3,000.
WLFI’s recent activities could potentially inspire broader institutional adoption of Ethereum, positioning it for a significant rally. As the market waits with bated breath, all eyes will be on whether Ethereum can capitalize on its newfound momentum.
