Ethereum News Today: Ethereum Eyes $5,000 as Whales Buy $435M in 24 Hours

Ethereum is showing signs of a potential rally toward $5,000, driven by a surge in accumulation from large investors—commonly referred to as whales. Over the past 24 hours, three major whale accounts have acquired $435 million worth of ETH. One of these whales alone purchased 60,000 ETH tokens—valued at $284.76 million—from Coinbase Prime. Following the acquisition, this whale moved 3,200 ETH to multiple wallets and staked some on Coinbase [1]. Two additional whales added $150 million worth of ETH during the same period, pushing Ethereum’s Taker Buy Sell Ratio to 1.05 from 0.92, a clear sign of increased buying pressure [1].

The increased whale activity is reflected in Ethereum’s recent price action. Since hitting a low of $3,500 nearly two weeks ago, ETH has traded within an ascending channel, reaching a high of $4,700. At the time of writing, ETH was trading at $4,646, down 1.72% in the last 24 hours. This follows a 19% price increase over seven days [1]. According to Arkham Intelligence, these large buyers have been taking advantage of price dips, reinforcing the idea that institutional or high-net-worth investors are positioning for a long-term bullish move [1].

However, the market is not without caution. While whales are accumulating, retail investors appear to be taking profits. According to CryptoQuant, Ethereum’s Exchange Netflows turned positive, rising from -209,000 to 37,000 ETH. This shift suggests that more ETH is moving into exchanges than out of them, a potential bearish signal as it indicates increased selling pressure from smaller investors [1]. Furthermore, Ethereum’s stock-to-flow ratio has dropped from a weekly high of 31 to 9.8, according to Santiment. A lower SFR means more ETH is available for immediate sale, which could undermine the altcoin’s scarcity and price strength [1].

Despite these concerns, Ethereum’s technical indicators remain bullish. The Moving Average Convergence Divergence (MACD) for ETH surged from 171 to 328, signaling rising buyer dominance. A bullish Parabolic SAR and increased accumulation rates also support the argument that whale-driven buying is fueling ETH’s recent price action [1]. If whales continue to accumulate, Ethereum could potentially reclaim the $4,700 level, retest its all-time high of $4,891, and move closer to $5,000.

On the flip side, if retail investors continue to cash out and whale accumulation slows, Ethereum could see a retrace to $4,165. The market remains in a state of balance, with institutional buying and retail profit-taking pulling the price in opposite directions. Investors are advised to monitor whale activity and on-chain metrics closely as the altcoin consolidates near key resistance levels [1].

Source:

[1] Tracing Ethereum's road to $5K - Whales will have a role to play, BUT… (https://ambcrypto.com/tracing-ethereums-road-to-5k-whales-will-have-a-role-to-play-but/)