Takeaway:
- Ethereum bounces off the $4,200 key support for the third time as whale accumulation continues.
- Analysts predict a higher rise as $8 billion August inflow signals stronger buyer conviction.Â
Ethereum surged significantly in the last 30 days, drifting close to its all-time high of $5,000. After the initial rally, some macroeconomic factors, such as the uncertainty of the US Fed rate cut, have resulted in a price drop. Currently, its key support level is around $4,200. Despite dropping to its support level thrice in the last 30 days, ETH has repeatedly rebounded to trade above $4,300 price level. The top altcoin keeps hovering around $4,300 to $4,500, and occasionally rallies to $4,700.
This strong performance is closely tied to the demand for ETH. The demand has been growing steadily over the last 90 days. From a low of $2,100 in June, ETH went on to peak at over $4,950 in August.
For most of August, market whales have stunned other market players with their consistent purchase of Ethereum in large volumes. In August alone, institutional players accumulated roughly $8 billion worth of Ether. Lookonchain data shows a single whale purchase of $2.55 billion worth of ETH.
A series of other small buys from various institutional investors pushed up the numbers. Some include a $300 million cumulative buy within just 30 hours in late August.
Ethereum Gains Against Bitcoin
The recent attention directed towards Ethereum caused it to gain significant ground against Bitcoin. ETH/BTC ratio currently stands at $0.044, which is the highest since September 2024. This shows Ethereum is outperforming Bitcoin strongly.
However, this is unsurprising since the majority of whales who invested heavily in ETH over the past few weeks sold their Bitcoins to get Ethereum.
So, while the selling spree is causing outflow for BTC, Ethereum is gaining significantly, ramping a 3X rise so far.
Analysts Say Eth Ready to Skyrocket After Repeated $4,300 Retest
After dropping to a low of $4,200 twice in the last 7 days, Ethereum rebounded above 4,300. Data shows similar movement in the last 14 days, where it traded at $4,100 before resurging above $4,300.
At press time, Ethereum trades at $4,480. According to top analyst Ali charts, ETH needs to clear $4,500 to trend bullish again.
If this happens, the premier altcoin could skyrocket and break its former all-time high before the end of summer.
