Ethereum’s Price Action After Last Month’s Rally
Following a significant rally last month that propelled Ethereum to a new all-time high near $5,000, the altcoin has since experienced some volatile price movements.
Nevertheless, Ethereum is striving to regain the critical $4,500 mark, as wealthy ETH whales discreetly accumulate more in the background.
Accumulation Trends Among Whales
There is a steady accumulation trend from mid-sized whales and sharks holding between 1,000 and 100,000 ETH. Over the past five months, these key investors have increased their holdings by 14%, reflecting growing confidence, according to the most recent data from Santiment. This trend began as ETH traded near its yearly lows of approximately $1,800 to $1,400.
This pattern could provide strong support for the altcoin’s current price momentum. In addition to these mid-sized wallets, Altcoin Vector examined specific cohorts of whales and discovered that the purchasing activity of these holders aligns with ETH’s broader price movement.
Breaking Free from Bearish Compression
The data indicates that Ethereum is breaking away from the bearish compression that has impacted its price. A decisive move beyond $5,000, however, relies on renewed whale accumulation. Their analysis shows that between mid-July and August, mega whales holding at least 10,000 ETH, followed by large whales possessing 1,000 to 10,000 ETH, significantly raised their holdings.
Interestingly, these accumulation periods coincided with the development of Ethereum’s aggregate impulse, suggesting the influence of strong hands on price momentum. For ETH to surpass the all-time high zone without encountering resistance, a similar wave of conviction-driven accumulation will be necessary. While there is noticeable spot demand for Ethereum, speculation driven by derivatives has recently played a more significant role in affecting the price.
The Potential for a Breakout
However, a breakout above the resistance could alter this dynamic, enhancing spot-driven confidence and triggering the next strong price impulse. If this momentum develops, Ethereum could finally break through previous highs and establish itself firmly above the $5,000 level.
Recent Exchange Withdrawals
Popular crypto analyst Ali Martinez reported that 500,000 ETH, valued at approximately $2.1 billion, was withdrawn from centralized exchanges over the last week. Large outflows like these are often seen as investors transferring assets into self-custody, which can reduce selling pressure on exchanges during a time when the asset is trying to reclaim essential resistance levels.
