Ethereum News Today: Whales Bet Big as Ethereum Nears Crucial Breakout Test

The Ethereum (ETH) price is currently under close scrutiny as investors and analysts assess whether the digital asset is on the cusp of a significant breakout or if the recent price action is merely a false signal. At the time of reporting, ETH is trading at $4,326, having increased by over 23% in the last 30 days according to Nansen. The market is abuzz with a mix of bullish and bearish signals, fueled by key on-chain activity and strategic moves from major players in the ecosystem.

On the institutional front, the Ethereum Foundation (EF) has announced the sale of approximately 10,000 ETH, valued at $43 million, to fund research, development, and grants within the Ethereum ecosystem. This is part of the foundation’s ongoing treasury management strategy introduced in June 2024. The sale will be executed through multiple smaller transactions over several weeks to minimize market impact. Notably, this follows past sales that have coincided with price surges, including a major 100,000 ETH sale in December 2020, which preceded a record-high price.

Meanwhile, large-scale market participants—commonly referred to as "whales"—have shown significant interest in ETH. Over the past 24 hours, whales have accumulated 260,000 ETH, suggesting a growing confidence in the token’s value. Additionally, well-known crypto trader James Wynn has opened a leveraged long position of 67.5 ETH with 25x leverage, placing liquidity at $4,205.2, indicating a belief that the price will not fall below that level. This activity has contributed to a modest price recovery, pushing ETH from $4,240 back above $4,405 in a short span.

From a technical perspective, Ethereum’s price chart on the four-hour timeframe indicates the formation of a descending triangle pattern. If ETH manages to break above the $4,470 resistance level, analysts suggest it could see a 10% price increase, potentially testing or even surpassing its all-time high of $4,956. However, the market is also marked by bearish signals. On-chain data reveals that traders are currently over-leveraged at $4,353.1 and $4,442, with $235.26 million in long positions and $720.41 million in short positions. These levels serve as key liquidation points, and a significant move in either direction could trigger volatility.

Despite the bullish accumulation, on-chain analytics also show that $88 million worth of ETH has been moved onto exchanges over the past 24 hours, suggesting some profit-taking after the recent price recovery. However, this outflow remains smaller in magnitude compared to the whale-level accumulation. The price is currently hovering below the 15-day and 21-day Exponential Moving Averages (EMA), and a sustained move above these levels could signal a potential breakout.

In summary, Ethereum is at a critical juncture. While the actions of whales and traders indicate a strong interest in ETH, bearish on-chain indicators and key technical levels suggest that the market remains cautious. The coming days will be pivotal in determining whether ETH can establish a new price floor and generate the momentum needed for a broader breakout.

Source: [1] Ethereum Foundation to sell 10K ETH for R&D, grants, and ... (https://cointelegraph.com/news/ethereum-foundation-sale-research-grants-donations) [2] Ethereum at $4.4K: Breakout or fakeout as ETH whales ... (https://ambcrypto.com/ethereum-at-4-4k-breakout-or-fakeout-as-eth-whales-step-in/) [3] ETH Approaches $4200 Support as Bearish Triangle ... (https://intellectia.ai/news/crypto/eth-tests-4200-support-as-bearish-triangle-targets-3900-breakdown)