Ethereum News Today: Ethereum Surges to $3,730 Amid Whale and Institutional Buying Spree

Ethereum (ETH) surged to an intraday high of $3,730 on Aug. 5, 2025, before retreating to around $3,650. This rebound came amid increased whale and institutional accumulation, with new wallets acquiring over $3.16 billion worth of ETH in just two days. According to Santiment, the number of wallets holding more than 10,000 ETH has grown significantly, signaling potential long-term positioning from major holders [1]. On Aug. 4 and 5, 14 new whale addresses collectively amassed 856,000 ETH, suggesting heightened conviction from high-net-worth individuals or institutional actors [2].

Institutional interest in ETH is also on the rise. The Strategic Ethereum Reserve (SER), which tracks institutional holdings, has seen its assets under management jump from below $3 billion to over $10.8 billion in just six weeks. This growth was further accelerated by SharpLink, a Nasdaq-listed firm, which added 18,680 ETH—valued at approximately $66.63 million—to the reserve on Aug. 4 [3]. These developments reinforce the perception of Ethereum as a strategic asset within institutional portfolios.

Despite the accumulation and renewed buying interest, Ethereum remains unable to decisively break above the $3,800–$3,900 resistance level. The recent rally lacks the momentum to spark a broad shift in market sentiment. Ethereum-focused ETFs have recorded outflows of $129 million in the past week, indicating lingering hesitation from mainstream investors. Broader macroeconomic factors, including trade war risks and concerns over the U.S. labor market, continue to dampen risk appetite [4].

Technical indicators also highlight a fragile short-term outlook. According to CoinGlass, Ethereum is trading near a dense cluster of long liquidation levels between $3,620 and $3,660. This zone is marked by high-intensity bands on the 24-hour liquidation map, representing overleveraged positions that could be triggered if ETH dips further [5]. A breakdown below $3,650 could push the price into this pocket, potentially sparking cascading liquidations and further downward pressure.

The market is closely watching whether bulls can defend the current support zone and drive a short-term rebound. A successful push above $3,730–$3,780 could target the next wave of liquidation levels, potentially reigniting upward momentum. Some analysts are optimistic about Ethereum’s prospects, pointing to bullish technical patterns on the weekly chart. As one trader on social media noted, ETH appears to be in a “Buy the dip” scenario, with buyers stepping in at key support levels [6].

However, the path to $4,000 remains challenging without a clear narrative or near-term catalyst. The current rally is still vulnerable to reversal unless accompanied by broader market confidence and sustained inflows.

Source:

[1] https://coinmarketcap.com/community/articles/6891bc4c3ef53d6dd41fa201/

[6] Twitter (August 4, 2025) – User: @TedPillows