Key takeaways:
A dormant whale purchases $28M in ETH following a 13% price drop, indicating accumulation.
Whales, BitMine, and ETFs contribute billions in ETH, supporting bullish sentiment.
A “V-shaped” recovery pattern is forming, with analysts targeting $7.5K–$20K.
After four years of inactivity, an Ethereum whale wallet has emerged, acquiring $28 million worth of Ether (ETH), generating positive buzz in the market.
Wealthy Ethereum addresses are capitalizing on the dip
On Tuesday, the entity withdrew 6,334 ETH (approximately $28.08 million) from Kraken within the last hour, according to on-chain data from analyst CryptoGoos. The same address last interacted with the platform in 2021.
Ether has declined over 13% since Sunday, dropping from above $5,000 to approximately $4,315, a decrease the whale appears to have viewed as a buying opportunity.
The transaction is significant as whale withdrawals from exchanges are typically perceived as a bullish indicator, suggesting accumulation and long-term holding rather than immediate selling pressure.
Other whale accounts have made even larger ETH acquisitions.
On Tuesday, crypto exchange Bitstamp transferred 20,000 ETH to an unidentified wallet, based on Whale Alert data. This points to an exchange-to-self-custody movement often linked with accumulation.
Additionally, data from Arkham Intelligence indicates a single whale purchased and staked around $2.55 billion in ETH through Hyperliquid on Monday.
These actions align with BitMine’s ongoing investments in Ethereum. In the past week, the firm has added $252 million in Ether, boosting its total holdings to 797,704 ETH (worth roughly $3.7 billion).
Related: Tom Lee predicts Ether will hit bottom ‘in the next few hours’ as BitMine acquires 4,871 ETH
BitMine also has an additional $200 million in resources for further Ethereum investments.
Spot Ethereum ETFs have witnessed over $1 billion in inflows since August 21, according to Farside Investors data, nearly offsetting $925.70 million in outflows from four days earlier.
This steady influx of capital complements whale and institutional buying, bolstering the perception that ETH’s dip is being viewed as an opportunity rather than a downturn.
Ethereum in “V-shaped” recovery: Analyst
The ongoing rebound of Ether from summer lows near $3,350 to surpassing $4,000 resistance is forming a “V-shaped” recovery, reminiscent of previous cycle bottoms that preceded significant bull markets, as noted by analyst GalaxyBTC.
In late 2020, ETH portrayed a similar “V” trajectory, rising above $4,000 a year after plummeting to around $100 during the March pandemic crash. A smaller iteration of this pattern occurred in late 2022 when ETH topped $2,000 in early 2023, recovering from below $1,200.
Technical setups for Ethereum indicate the price could reach $10,000-20,000 in the upcoming months. Geoffrey Kendrick, the head of digital assets at Standard Chartered, forecasts it will reach $7,500 by the year’s end.
This article does not constitute investment advice. All investment and trading decisions carry risk, and readers are encouraged to conduct thorough research before making choices.
