Ethereum News Today: Whales Accumulate as Ethereum Tests Critical $4,070 Gap

Ethereum (ETH) is approaching a key CME futures gap in the $4,050 to $4,100 range as the price hovers near $4,350, down from a recent high of $4,800 [1]. The gap, which forms when futures markets reopen after weekends, is often a magnet for price action, and traders are closely watching for a potential breakout or reversal. Historical data suggests that when Ethereum filled a similar gap in the past, it subsequently saw a 40% price surge within weeks [1].

Analyst Michaël van de Poppe has highlighted that Ethereum is now entering a critical support zone between $4,100 and $4,250, where a bounce is expected. He noted that this area offers a strong buying opportunity, with sub-$4,000 levels being particularly attractive [1]. Another potential support level is identified at $3,941, though van de Poppe considers the likelihood of the price reaching that level to be low unless broader market conditions worsen.

On-chain data reveals a shift in investor behavior, with retail holders reducing their Ethereum exposure while large investors, or "whales," continue to accumulate. According to CryptoQuant, retail ETH holdings have dropped from 10.5 million to 8.7 million since March [1]. In contrast, large investors are increasing their positions, as evidenced by the growing number of ETH being taken off exchanges. This trend suggests a shift in sentiment, with institutional and experienced traders showing increased confidence in Ethereum’s long-term prospects.

Exchange reserves have fallen to 18.5 million ETH, the lowest level in over three years [1]. This sharp decline in available supply on exchanges is often interpreted as a sign of reduced selling pressure, which may provide further upward momentum for the price. Analysts have also pointed out that the current drop in exchange balances has occurred rapidly, with a significant portion of the reduction taking place over just a few days.

Looking ahead, several macroeconomic events may influence Ethereum’s short-term price trajectory. These include the Trump-Zelensky meeting on Monday, the release of July FOMC minutes on Wednesday, U.S. jobless claims on Thursday, and Federal Reserve Chair Jerome Powell’s speech at Jackson Hole on Friday [1]. Recent inflation data, particularly the Producer Price Index (PPI), has already paused Ethereum’s push toward a new all-time high. Traders are now watching for potential volatility around these upcoming developments.

The market remains in a dynamic phase, with Ethereum caught between bearish and bullish indicators. While the price correction has brought it closer to key support levels and reduced exchange reserves, on-chain activity suggests growing accumulation by larger investors. As the market awaits key macroeconomic releases, the coming days will be crucial in determining whether Ethereum can successfully test and potentially break the $4,070 CME gap [1].

Source:

[1] Ethereum Price Targets $4,070 CME Gap After Hitting Key Zone (https://cryptopotato.com/eth-price-targets-4070-cme-gap-after-hitting-key-zone/)

[2] Ethereum Nears $4,070 CME Gap Amid Whale Accumulation and Falling Exchange Reserves (https://www.kucoin.com/news/flash/ethereum-nears-4-070-cme-gap-amid-whale-accumulation-and-falling-exchange-reserves)