Ethereum Whales Spotted Buying $800M ETH in 24-Hours: What’s Behind It?

Ethereum Price Analysis:

Ethereum price stood at $2,400 on September 4, down 15% in the last 10 days. On-chain data reveals that whale investors have been on a significant buying spree since August 16, capitalizing on the declining prices.

Ethereum Tumbles 15% as Bulls Take a Sit-and-Watch Stance

Ethereum price slid below $2,400 on September 4, as the global cryptocurrency market continues its underwhelming start to the month. Many crypto bull traders appear to have taken a cautious approach in anticipation of a potential rate cut by the US Federal Reserve.

After four years of contractionary monetary policy, the US Fed is expected to announce an interest rate cut during the upcoming FOMC meeting, slated for September 17.

Consequently, ETH short-term traders have shown reluctance to take high-risk positions in recent weeks.

The first chart shows how Ethereum price has been on a downtrend since retracing from the $2,820 level on August 24. Rather than advancing towards the $3,000 area as many expected, Ethereum bulls have opted for a more cautious approach.

As of September 4, Ethereum price declined to as low as $2,400, reflecting a 15% decline in the last 10 days.

Ethereum Whales Enter $800M Buying Spree

While short-term traders are cautious ahead of the next FOMC meeting, Ethereum whale investors have been quietly buying the dip.

IntoTheBlock’s Large Holder Netflow metric, which tracks daily net changes in the balances of whale wallets holding at least 120,000 ETH, shows significant activity.

The latest data reveals that Ethereum’s largest whale wallets added 333,740 ETH to their balances on September 3. Valued at approximately $800 million, this marks the highest single-day whale inflow since March 13.

More so, August 16 was the last time Ethereum’s largest whale wallets recorded negative flows. Since then, they have ended each of the last 20 trading days with more inflows than sales.

Evidently, the largest investors within the Ethereum ecosystem have been on a 20-day buying spree since August 16, adding over $800 million on September 3 alone.

This suggests that while short-term retail traders are selling, Ethereum’s institutional investors are persistently taking bullish positions, buying the dip potentially to front-run gains from the widely anticipated US Fed Rate cut this month.

Historically, prolonged whale buying trends have often signaled potential bullish movements in Ethereum’s price. For instance, on March 13, when whale inflows exceeded 370,000 ETH, the increased demand drove ETH price to its yearly peaks above $4,000.

If this historical pattern repeats, ETH price could be on the verge of an 85% breakout towards $4,000.

ETH Price Forecast: Bulls Must Hold $2,400 Support

Over the past 10-days Ethereum price has declined 15% struggling under intense selling pressure from short-term retail traders. But if the whale buying spree continues, ETH price is now likely to find support and avoid a significant breakdown below $2,400.

In the short term, the Keltner Channel (KC) technical indicators show that Ethereum price is nearing the lower band, currently at $2,316.70, indicating potential further downside pressure.

If Ethereum fails to maintain the $2,316 support level, it could see a decline toward the $2,200 mark, which would serve as the next critical support level.

However, on the upside, should Ethereum manage to hold above $2,316, it may attempt to break through the immediate resistance at $2,571.77. A successful break above this resistance could open the door for a retest of the $2,826.83 level, which would be crucial for shifting the momentum back in favor of the bulls.

In the long term, the ongoing accumulation by whale investors hints at a potential bullish reversal. Historically, similar patterns of whale accumulation have preceded significant price increases, suggesting that Ethereum could see a resurgence if the broader market conditions improve, particularly if the US Fed rate cut materializes as expected.

For now, the $2,400 level remains a pivotal point to watch, as Ethereum balances between bearish short-term risks and a potentially bullish long-term trajectory.