Ethereum News Today: Whales Steer Ethereum's Rally Amid Volatility and Strategic Buy Zones

Ethereum’s price has seen a significant rally, reaching an all-time high of nearly $4,900 in early August 2025 before retracing to around $4,600. Analysts and on-chain data suggest that this pullback could be a favorable buying opportunity, particularly if the price stabilizes above key support levels such as $4,400 and $4,450. Whales on major exchanges like Binance have been actively accumulating Ethereum, with large spot and futures orders indicating continued confidence in the cryptocurrency’s long-term trajectory. This trend contrasts with typical retail investor behavior, as institutional and large-scale players often prefer to enter positions after a bullish trend has been confirmed rather than attempting to buy at the initial uptick. Analyst Darkfost noted that whale activity on Binance has surged since July, reflecting a broader shift in market dynamics. The accumulation by these large players is seen as a sign of reduced risk-taking and a preference for clarity in market direction. On-chain metrics further support the bullish case, with Ethereum’s Average Order Size and Futures Volume Bubble Map showing increased speculative activity. The latter has revealed several "red bubbles" — a visual indicator of overheating — as the price approached $4,900. These conditions have historically coincided with local tops or heightened volatility, particularly as leverage increases and liquidation risks become more pronounced. While Ethereum remains within a strong bullish trend on higher timeframes, bearish divergences on the daily and 4-hour RSI suggest caution. A correction toward $4,100 could occur unless buyers successfully defend the $4,400 level and push the price back above the $4,900 threshold with strong momentum. The 50-day and 100-day simple moving averages are now converging near the $4,450–$4,435 range, acting as dynamic support. Meanwhile, the 200-day SMA, currently at $4,068, could signal a deeper correction if the price breaks below it. The 4-hour chart indicates that the price has undergone a sharp liquidity sweep toward $4,884, followed by consolidation. RSI remains bearish, reflecting fading momentum despite higher price levels. Key short-term support levels lie at $4,477 and $4,380–$4,311. A breakdown below these levels could trigger increased selling pressure toward the $4,000 level, potentially confirming a short-term shift in market structure. Conversely, a successful retest and break above $4,900 could invalidate the bearish divergence and extend the bullish leg. On the broader market front, Ethereum’s performance has been influenced by speculative activity in derivatives markets, with futures trading surging alongside spot price gains. Analysts highlight that such activity often precedes corrections or periods of volatility, especially when leverage rises and liquidation cascades become more likely. The market remains in a bullish cooldown phase, with apparent demand for Ethereum having dropped from a July peak of 174,000 BTC to around 59,000 BTC as of early August. Institutional buyers, including major firms like Strategy, have also slowed their accumulation, though they continue to purchase smaller volumes compared to earlier in the year. Despite the recent pullback, the overall bullish sentiment persists, particularly among large market participants. The combination of on-chain accumulation, technical indicators, and whale behavior suggests that Ethereum’s rally could extend well beyond its previous highs if buyers continue to step in during the current consolidation phase. However, investors are advised to remain cautious, as the market appears to be entering a period of increased risk of volatility and potential corrections.

Source: [1] Ethereum Whale Demand Surges On Binance As Price ... (https://www.mitrade.com/au/insights/news/live-news/article-3-1067157-20250825) [2] Ethereum Price Analysis: Is ETH About to Break Past $5K ... (https://www.fastbull.com/news-detail/ethereum-price-analysis-is-eth-about-to-break-news_6100_0_2025_3_9072_3/6100_SOL-USDT) [3] Ethereum's Fiery Rally: ETH $5K Breakthrough on the ... (https://www.fxleaders.com/news/2025/08/24/ethereums-fiery-rally-eth-5k-breakthrough-on-the-horizon/)