World Liberty Financial Expands Ethereum Holdings: Is a $4K ETH Breakout Imminent?

• World Liberty Financial (WLFI) has aggressively expanded its Ethereum holdings, now totaling over 70,157 ETH, fueling speculation about a potential ETH price surge to $4,000 and beyond.
• Analysts highlight Ethereum’s recent technical breakout and WLFI’s continuous accumulation as key factors driving bullish market sentiment.

World Liberty Financial (WLFI), a cryptocurrency project associated with the Trump family, has been making waves in the market with its aggressive Ethereum accumulation strategy. The organization has significantly expanded its Ethereum holdings, recently purchasing 2,971.45 ETH, valued at approximately $9.97 million, bringing its total Ethereum stash to over 70,157 ETH.

World Liberty Financial’s Large-Scale ETH Accumulation

The latest $10 million Ethereum purchase by WLFI has increased its total ETH holdings to a staggering 70,157, currently worth around $235 million. Data from SpotOnChain reveals that WLFI has been consistently acquiring Ethereum on a daily basis, adding buying pressure to the market. As a result, the project’s total cryptocurrency assets now exceed $388 million, with Ethereum making up a substantial portion of its portfolio.

WLFI’s crypto accumulation strategy extends beyond Ethereum. A recent CoinGape report highlighted its $109.1 million investment in six different digital assets. Ethereum took the lion’s share of this investment, with WLFI purchasing 21,425 ETH at an average price of $3,337. The project has also invested in WBTC, TRX, AAVE, LINK, and ENA, contributing to surging market activity across multiple tokens.

Ethereum Breaks Key Downtrend, Signaling Bullish Momentum

In a significant technical development, Ethereum has recently broken above a long-standing descending trendline that had acted as resistance for months. This breakout follows several failed attempts, signaling a shift in market sentiment. Analysts suggest that if ETH holds above this resistance-turned-support level, further price gains could be imminent.

Crypto analyst Lark Davis has highlighted Ethereum’s breakout, emphasizing that it is backed by increased trading volume. Historically, February has been a strong month for Ethereum, and the current price movement suggests that ETH may be on the verge of a sustained bullish rally.

$ETH breaking out is good signs for the entire altcoin market.

With Feb historically being a bullish month, we could see a full-blown alt season play out soon. pic.twitter.com/G3VvOi6j32

— Lark Davis (@TheCryptoLark) January 31, 2025

Analysts Predict ETH to Reach $4,000 and Beyond

Market experts are optimistic about Ethereum’s price trajectory, forecasting a potential rally toward $4,500 in the coming weeks. Analyst Ted Pillows has pointed out that ETH has entered an expansion phase after consolidating between $3,100 and $3,250. If Ethereum secures a daily close above $3,344, analysts expect a move toward the $4,000–$4,500 range.

On-chain data suggests that WLFI’s continued buying pressure has helped stabilize ETH’s price, reinforcing bullish market sentiment. Some analysts believe that as WLFI maintains its aggressive accumulation, Ethereum could gain further momentum.

However, caution remains. The Market Value to Realized Value (MVRV) ratio, a key indicator of market sentiment, has dipped below the 160-day moving average. Historically, this has signaled potential market corrections, with past occurrences leading to price pullbacks of up to 40%.

Speculation Around ETH’s Role in U.S. National Digital Reserves

Recent speculation suggests that World Liberty Financial’s large-scale Ethereum purchases may be tied to plans of including ETH in the U.S. national digital reserves. If Ethereum were to secure a place in the country’s financial reserves, analysts predict its price could skyrocket to $10,000 or beyond.

At the time of writing, Ethereum is trading at $3,395, marking a 4% increase in the past 24 hours. The asset has surged from $3,263 earlier in the day to a peak of $3,394, signaling a strong upward trend. With WLFI’s aggressive accumulation and positive technical indicators, Ethereum’s path toward $4,000 and beyond appears increasingly likely.