Key Insights
- WLFI, the Trump family-owned crypto venture continues to buy Ethereum for some reason.
- The WLFI is also among the top 0.1% holders of staked Ethereum holders in the world.
- This platform already holds up to $225 million worth of ETH, and could be buying in line with a bullish pattern for Q1 of this year.
- Ethereum is expected to make more than a 50% price increase between January and March, according to historical and technical patterns.
- This outlook puts Ethereum well over $4,000 and close to the $5,000 mark.
The Trump Family defi venture, World Liberty Financial continues to make more investments in Ethereum, for some reason.
According to recent data from Arkham Intelligence, the platform recently bought tranche of the cryptocurrency worth millions.
This platform now holds hundreds of millions worth of ETH at the time of writing, and here’s why WLFI might know something about ETH that retail traders do not.
Another Big Bet on Ethereum
The latest Ethereum purchase from WLLFI happened on 31 January, when the platform bought a staggering $10 million worth of ETH.
This followed a similar $10 million ETH purchase from 28 January, and has fully evolved into a pattern of aggressive crypto investments.
So far, WLFI now holds millions of dollars woirth of assets like Wrapped Bitcoin (WBTC), Tron (TRX), Chainlink (LINK), and Aave (AAVE).
Most of these purchases have been executed so far through the CoW protocol, and here are some more details.
So far, the WLFI now holds up to 66,239 ETH, all of which is worth around $225 million at the time of writing.
Furthermore, the platform has now been identified as part of the top 0.1% of staked Ethereum holders in the world according to Arkham.
Could the Trump family know something nobody else does?
Here Are The Signs
To start with, the Trump family’s Ethereum purchases come at an interesting time.
Data from Coinglass supports this outlook, according to the snapshot below:
Ever since 2014, Ethereum typically performs extraordinarily in the first and second quarters of the year.
For example, the cryptocurrency raked in a staggering 56% value in Q1 of 2024, despite a bearish second quarter.
The same thing happened in 2023 with a 52% price increase in Q1, along with a 160% price increase from 2021.
This bullish trend skipped 2022 and 2018, both of which happened to mark the starts of fresh bear markets.
Put simply, if the trend holds again, Ethereum could be looking at an average price rise of around 50% between January to March of this year:
Putting its price at well over the $4,000 mark.
The Bigger Picture
There might be some issues with this outlook though, considering the current hurdles Ethereum is facing.
For example, the spot ETF market has failed to attract inflows of more than $150 million for the past week according to data from Soso Value.
While the Ethereum ETF market has been green so far, it has massively underperformed compared to the Bitcoin ETF market, which has raked in upwards of $3 billion over the last week.
The Trump family could still be putting their eggs in the right basket though, according to the charts.
The 4-hour chart shows that Ethereum currently trades within a falling wedge formation, which is a bullish pattern.
The cryptocurrency already made an attempt to break out of this pattern around 31 January (the same day as the WLFI purchase), but was rejected by the bears somewhere around $3,450.
With this being said, Ethereum is testing its 50-period EMA on this timeframe around $3,250 and could leverage this zone for a rebound above $3,500.
Ethereum’s ability to clear the $3,500 zone will play a key role in whether or not it breaks above the $4,000 zone and achieves this 50% quarterly price increase.
