Key takeaways:
A dormant whale has purchased $28M in ETH as the price dips by 13%, indicating a potential accumulation.
Whales, BitMine, and ETFs contribute billions in ETH, strengthening bullish demand.
A “V-shaped” recovery pattern is forming, with analysts targeting prices between $7.5K and $20K.
An Ethereum whale wallet has re-emerged after a four-year hiatus, acquiring $28 million worth of Ether (ETH), which has sparked positive sentiment in the market.
Wealthy Ethereum addresses are seizing the dip
On Tuesday, this entity withdrew 6,334 ETH (approximately $28.08 million) from Kraken within the last hour, according to on-chain data shared by analyst CryptoGoos. This address last engaged with the exchange in 2021.
Transaction history of the Ethereum whale. Source: CryptoGoos
Ether has experienced a drop of more than 13% since Sunday, falling from over $5,000 to around $4,315, a decline that the whale seems to have taken as a buying opportunity.
ETH/USD four-hour price chart. Source: TradingView
The withdrawal is significant as whale outflows from exchanges are generally regarded as a bullish indicator, implying accumulation and long-term holding rather than immediate sell-off pressure.
Other whale wallets have also made substantial ETH purchases.
On Tuesday, the crypto exchange Bitstamp transferred 20,000 ETH to an undisclosed wallet, according to Whale Alert data. This highlights an exchange-to-self-custody transaction typically associated with accumulation.
Source: Whale Alert
Additionally, as reported by data provider Arkham Intelligence, a single whale purchased and staked approximately $2.55 billion in ETH via Hyperliquid on Monday.
These transactions coincide with BitMine’s ongoing investment in Ethereum. Over the past week, the firm has added $252 million in Ether, raising its total holdings to 797,704 ETH (approximately valued at $3.7 billion).
Related: Tom Lee predicts Ether bottom could occur ‘in the next few hours’ as BitMine acquires 4,871 ETH
BitMine also holds an additional $200 million in reserves for forthcoming Ethereum purchases.
Spot Ethereum ETFs have drawn over $1 billion in inflows since August 21, according to Farside Investors data, effectively offsetting $925.70 million in outflows observed just four days earlier.
This steady influx of capital complements the buying activities of whales and corporations, reinforcing the perception that ETH’s dip is being viewed as a strategic entry point rather than a downward breakdown.
Ethereum on the path to “V-shaped” recovery: Analyst
Ether’s current bounce from summer lows around $3,350 to above $4,000 is forming a “V-shaped” recovery pattern, reminiscent of previous cycle lows that preceded major upward movements, as per analyst GalaxyBTC.
In late 2020, ETH established a similar “V,” surging to over $4,000 a year after plummeting to about $100 amid the March pandemic crash. A smaller reenactment of this scenario occurred in late 2022, with ETH bouncing back above $2,000 in early 2023 from under $1,200.
ETH/USD monthly price chart. Source: TradingView
Technical indicators suggest ETH’s price could rise towards $10,000-20,000 in the upcoming months. Geoffrey Kendrick, head of digital assets at Standard Chartered, projects it will reach $7,500 by the end of the year.
This article does not constitute investment advice or recommendations. Every investment and trading move involves risk, and readers are encouraged to conduct their own research before making any decisions.
