Why are institutional funds still increasing after ETH breaks through 3250

According to the latest news, ETH has just broken through the key level of 3250 USDT, with the current price at 3250.26 USDT. This is not just a simple numerical breakthrough; it reflects the continuation of Ethereum’s recent upward momentum and sustained institutional interest. From a 3.10% increase over 24 hours to a 10.21% cumulative gain over 7 days, ETH is brewing a solid upward trend. More interestingly, at this time point, institutional funds and large holders are still increasing their positions, providing ample room for market imagination.

ETH’s Upward Pace and Market Sentiment

Data support behind the price breakthrough

Based on the latest market data, ETH’s rise is not isolated:

The 24-hour trading volume reached $2.525 billion, an increase of 86.60% compared to the previous day, indicating that this upward movement is supported by trading volume. This combination of volume and price behavior usually signifies rising market participation rather than a false rally.

Market size steadily growing

ETH’s current market capitalization is $39.036 billion, accounting for 12.14% of the market. As the second-largest asset in the crypto market, this scale is sufficient to accommodate institutional inflows and outflows, also indicating that market recognition of ETH remains high.

Signals of Institutional Capital Inflow

Large funds in action

According to the latest reports, Tom Lee’s Bitmine added 82,560 ETH on January 3rd, worth approximately $259 million, bringing its total staked ETH to 544,064 ETH, valued at $1.62 billion. This large and continuous accumulation typically reflects institutional optimism about medium-term price prospects.

Divergence among whale holdings

Major bullish whales in the market, although some are at slight unrealized losses, have not adjusted their positions, indicating that large holders still maintain a bullish stance. Meanwhile, some whales are rebalancing, such as one whale swapping $44.195 million worth of WETH for WBTC. This cross-asset reallocation reflects active risk management by market participants.

Technical Considerations

Subtle changes in upward momentum

According to technical analysis, although ETH’s recent 4-hour candlestick chart shows an upward trend, there are some noteworthy signals:

• MACD histogram remains positive but is gradually shortening, indicating weakening bullish momentum
• RSI exceeds 70, which may signal a risk of a short-term pullback
• Price is rising while trading volume is decreasing, suggesting a slowdown in upward energy

This means that while the direction remains upward, the sustainability of the rally needs to be monitored.

Key levels to watch next

Based on technical analysis, the 3300-3400 range is an important recent resistance zone. If ETH can break through this range, it may further test 3500 or even higher levels. Conversely, if it encounters resistance here, the 3200-3250 zone could become a new support level.

Summary

ETH breaking through 3250 is a natural extension of the recent upward momentum. There are three supporting points behind this breakout: first, increased trading volume; second, continued institutional accumulation; third, firm holdings by bullish whales. However, technical signals indicate a weakening in upward energy, suggesting possible adjustments ahead. For market participants, key observations are whether ETH can stabilize above 3250 and whether it can push toward 3300-3400. In the short term, this price level has become a market focus, and subsequent performance will determine the next direction.