Trump-Linked Wallet Just Bought $3.5M in Ethereum, Bullish Surge Ahead!

Key Insights:A Trump-linked wallet just acquired 1,587 ETH worth $3.5M.Ethereum broke out of a 5-month wedge pattern, targeting $3,840.ETH is deflationary again, boosting long-term bullish sentiment.A wallet reportedly connected to the Trump-linked project World Liberty (@worldlibertyfi) gained attention after acquiring 1,587 ETH worth around $3.5 million. On-chain data from Lookonchain shows this transaction occurred at a key moment for Ethereum’s market, reinforcing the growing bullish sentiment surrounding the asset.This development of a series of technical breakouts and Ethereum’s deflationary behavior support growing confidence in ETH’s price outlook. Analysts now watch key resistance levels as potential launch points for a further price rally.Large Ethereum Buy Signals Institutional AccumulationOn-chain data shows that the $3.5 million ETH purchase was executed in a single transaction, a move generally seen among institutions or strategic investors. Large-scale buys like this are typically aimed at accumulation rather than short-term speculation.Source| XIf the ETH is transferred to a self-custody wallet or stored for project development, it effectively reduces the available supply on exchanges. Reduced supply often contributes to price stability and supports upward pressure when paired with rising demand.The wallet’s association with World Liberty, a project speculated to have ties to political interests, adds a narrative element to the purchase. This connection may introduce Ethereum to new audiences and drive visibility through politically aligned platforms.Technical Breakout Confirms Bullish ReversalAlongside this major purchase, (ETH) Ethereum has confirmed a breakout from a descending broadening wedge pattern, according to market analyst CryptoFaibik. The wedge pattern had formed over five months, marked by lower highs and lower lows. The breakout occurred as ETH pushed above the upper resistance of the wedge with increased trading volume.Source| XThe pattern carries the idea of significant momentum change, which is usually taken as a beginning of bullish reversal. The breakout is aimed at the $3,840 level according to technical projection. This is a point of historical resistance and psychological thresholds which the traders follow keenly.According to the analysts, if Ethereum holds up above its recent breakout level, then further upside can be unleashed over the next several weeks. If there is a pull back, then traders might seek short-term consolidation zones around the $2,000 –$2,150 level as reentry points.Historical Pattern May Be RepeatingAnother view is by analyst MisterrCrypto, who points to a potential historical fractal building on Ethereum’s chart. He compares it to a late 2023 consolidation period at similar price levels that was followed by a major price increase.Source| XThe current setup shows ETH holding above $1,800, with price stability resembling past patterns. According to the analyst, if momentum builds as seen in earlier cycles, this could lead to a rally toward the $5,000–$5,600 range.This repeated pattern, if correct, would suggest the market is experiencing the same inflection point as previous bullish cycles. The support at above the $1,800 level confirms the pattern’s strength.Ethereum Turns Deflationary Again After Pectra UpgradeApart from price action and wallet movements, on Ethereum’s chain level of fundamentals, it has also moved further towards a bullish outlook. In the last 24 hours, Ethereum became deflationary again, with data of 38,080 ETH being removed from the supply. Out of that, 33.58 ETH was burned, and 38,047 ETH was issued, which caused a net negative supply movement.Source| XThis deflation comes off the strength of recent Pectra upgrades on Ethereum, which enhanced layer 2 scaling, validators functions, and network efficiency. As the ETH is further utilised and it is burnt during the network activities, the circulating supply of the token keeps shrinking. This supply dynamic makes Ethereum increasingly attractive to long-term investors, especially in periods of economic uncertainty when assets with limited supply tend to gain favor.DisclaimerThis article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.Olivia StephanieOlivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.The post Trump-Linked Wallet Just Bought $3.5M in Ethereum, Bullish Surge Ahead! appeared first on The Market Periodical.