Ethereum News Today: Ethereum consolidation intensifies as $449 million in institutional ETH buying boosts bullish momentum

Ethereum faces a critical juncture as whale activity intensifies amid a pullback in price, with over $449 million in institutional ETH purchases reinforcing bullish sentiment [1]. The recent decline has drawn strategic buying at key support levels, particularly as the price consolidates near $3,600. Analysts note that the $3,100 zone serves as a critical battleground, aligning with historical demand and the 0.618 Fibonacci retracement level. A breakdown below current levels could see a retest of this area, marking a potential turning point for ETH's short-term trajectory [2].

The ETH/USD weekly chart on Bitstamp reveals a prolonged consolidation between $3,200 and $4,200, with the $3,800–$4,000 range acting as a strong resistance zone [3]. Ethereum formed a double-top pattern in July, failing to close above this level before reversing downward. The current price of $3,634 remains above the key Fibonacci support between $2,900 and $3,200, offering a buffer against further declines. However, continued selling pressure could see a retest near $3,100, a historically significant demand zone.

Institutional activity has played a crucial role in countering bearish sentiment. A whale entity recently created four wallets and purchased $361 million in ETH, while BlackRock added 23,874.75 ETH valued at $88.8 million [4]. These transactions indicate strategic accumulation during dips, a pattern often preceding strong upward moves when key support levels hold. The timing and scale of these purchases suggest institutional confidence in Ethereum's long-term potential despite near-term volatility.

From a market structure perspective, the ETH/USDT daily chart on Binance shows a consistent "reclaim-pump" pattern. Each time Ethereum has fallen below a key support level, it has been followed by a recovery and a subsequent bullish push [5]. The most recent reclaim near $3,600 mirrors this behavior, signaling the possibility of another move toward $4,400 if the pattern holds. This dynamic has been observed in March, June, and July, with each recovery culminating in a new price high.

The current battle for $3,600 is more than just a technical test—it is a reflection of broader market sentiment. With whale accumulation surging and institutional buying reinforcing the fundamentals, Ethereum remains in a tight but meaningful phase of consolidation. The outcome of this period will likely shape the next phase of ETH’s price action, either reinforcing a bullish rebound or signaling a deeper correction.

Source: [1] title1 (https://coinmarketcap.com/community/articles/689409a38c46c77d2c1317ab/)