The price of Ethereum has risen by 6.17% in the last 24 hours, outperforming the broader cryptocurrency market gains of 2.05%. This rise aligns with positive technical indicators, significant accumulation by large investors (whales), and record inflows into exchange-traded funds (ETFs).
Whale accumulation – $90.6 million worth of Ethereum was withdrawn from the Binance platform, indicating strong market confidence.
Increased demand for ETFs – A record inflow of $1 billion per day into Ethereum funds on August 12.
Technical breakout – The relative strength index (RSI) at 71.44 (indicating bullish momentum) and divergence in the MACD indicator.
Detailed analysis
1. Whale accumulation (positive impact)
Overview: An unknown large investor withdrew 21,000 ETH (worth $90.6 million) from Binance in less than 40 minutes, part of a broader trend where large investors added 138,000 ETH (around $500 million) over seven days (source).
What does this mean? Large withdrawals reduce the amount of currency available on exchanges, tightening liquidity and increasing upward pressure on price. Historical patterns suggest that continued whale buying often precedes bullish waves, as seen with Ethereum's 218% rise since April.
What to watch: Continued accumulation of wallets holding between 1,000 and 10,000 ETH, which now control 14.2 million ETH (about 11.7% of the supply).
2. ETF flows hit a record (positive impact)
Overview: Ethereum investment funds saw a record inflow of $1 billion on August 12, bringing total assets under management to $19.18 billion (source).
What does this mean? Institutional demand is accelerating, with BlackRock's ETHA funds alone holding 1.42 million ETH (worth $3.55 billion). Unlike Bitcoin funds, Ethereum funds allow for investment with the potential to earn returns through staking, making them attractive to traditional investors.
What to watch: U.S. Securities and Exchange Commission (SEC) decisions on ETFs supporting staking, which could open the door for more financial inflows.
3. Technical momentum (mixed impact)
Overview: The price of ETH has breached the $4,500 level, with the RSI at 71.44 (overbought level above 70) and the MACD indicator rising to +32.65. However, the open futures volume has reached $60.8 billion, increasing the risks of leverage.
What does this mean? Short-term bullish momentum is confirmed, but high leverage (funding rate 0.008%) increases price volatility. Ethereum faces immediate resistance at the 127.2% Fibonacci extension level at $4,750.
What to watch: Closing above $4,750 may target the all-time high of $4,878, while dropping below $4,300 could lead to liquidations.
Summary
The rise of Ethereum is linked to liquidity tightening by whales, increased institutional participation through ETF funds, and technical breakout dynamics. Despite the positive sentiment, derivatives markets indicate potential volatility.
Key point to monitor: Will Ethereum be able to maintain upward momentum after the Consumer Price Index (CPI) data is released on August 12, which affected the Federal Reserve's interest rate cut expectations?
