Ethereum News Today: Whales Stockpile ETH as Institutions Drive Next Bull Run

Ethereum (ETH) faces a critical juncture as recent price movements indicate a potential reversal from its supertrend. The cryptocurrency reached a record high of $4,953 on August 23, breaking its previous peak set in late 2021, before retreating to approximately $4,621. This pullback has sparked debates among traders and analysts regarding the strength of the ongoing bullish trend and whether a reversal is imminent.

Technical indicators such as the Supertrend have played a pivotal role in identifying potential buy zones during Ethereum's rally. When Ethereum remains above the Supertrend line, it confirms the bullish trend, while a drop below it may signal weakening momentum or a potential reversal. According to recent data, Ethereum’s retreat from the $4,950 level resembles a consolidation phase rather than a breakdown. The Supertrend indicator has flipped green, positioned below the current price, and the RSI stands at 60, indicating bullish momentum without overbought exhaustion [2]. Analysts suggest that this combination typically precedes another leg up, especially if the price remains above the 20-day exponential moving average [2].

On-chain metrics further support the bullish narrative. Glassnode data reveals that Ethereum is leaving exchanges at an accelerated pace, with net outflows of -138,656 ETH reported last week. This suggests that large holders are moving coins into cold storage, reducing sell pressure. Whale behavior has shifted notably since the early August breakout, with Binance data showing increased accumulation by large addresses after the bullish trend was validated. This buying coincides with shrinking ETH balances on exchanges, a historically bullish signal [2]. Over $216 million in leveraged long positions were liquidated during the brief dip from $4,953, flushing out weak hands while allowing whales to add exposure at discounted levels [2].

Institutional activity also reinforces Ethereum’s upward trajectory. Spot ETH ETFs have attracted nearly $2.79 billion in August net inflows, compared to $1.2 billion in outflows for Bitcoin ETFs, underscoring Ethereum’s rising dominance. Major corporate treasuries, including SharpLink Gaming and BitMine, have added significant ETH holdings, transforming the cryptocurrency into a quasi-reserve asset for both corporations and funds. Unlike prior cycles where Ethereum’s rallies were retail-led, this cycle is visibly institution-driven, explaining why Ethereum continues to outperform even as Bitcoin consolidates [2].

However, historical seasonality introduces caution. CoinGlass data shows that Ethereum has a tendency to give back August gains in September, with multiple instances of sharp retracements recorded in prior years. While the presence of spot ETH ETFs and corporate treasury adoption may offset seasonal weakness, the market remains at an inflection point. If support at $4,500 holds into September’s macroeconomic data releases—particularly U.S. PCE inflation—the setup favors another breakout attempt toward $5,200–$5,500 [2].

Ethereum’s price momentum has also influenced flows into meme tokens and smaller projects. Tokens like PEPE and emerging Layer-2 projects have attracted speculative inflows on the back of Ethereum’s ecosystem expansion. However, Ethereum remains the primary liquidity engine. If ETH breaches $5,000 and holds, spillover effects could lift the broader altcoin complex into another rally. Conversely, a sharp ETH rejection would likely pressure the memecoin sector first, exposing its fragility [2].

Source:

[1] ETH Supertrend Buy Zones Revealed | Bitget News (https://www.bitget.com/news/detail/12560604920876)

[2] Ethereum Price Prediction: Will ETH Hit $5200? (https://icobench.com/news/ethereum-price-prediction-will-eth-hit-5200-or-sink-before-september/)

[3] Ethereum (ETH) Retreats After Smashing ATH Near $4950 (https://www.ccn.com/analysis/crypto/ethereum-ath-eth-price-eth-retreats-after-4950-to-crack-resistance/)

[4] Massive Whale Buying Spree Could Catapult Ethereum ... (https://cryptopotato.com/massive-whale-buying-spree-could-catapult-ethereum-eth-beyond-5000/)

[5] Ethereum Price Forecast: ETH-USD at $4,621 After Hitting ... (https://www.tradingnews.com/news/ethereum-price-forecast-eth-usd-pulls-back-to-4621-usd)