Arthur Hayes, the Ethereum speculator, founder of BitMEX, and a long-time cryptocurrency supporter, repurchased $10.5 million worth of Ethereum at prices above $4,100 just days after taking profits from $8.3 million in Ether holdings. Tracking tools are monitoring large-volume ETH transactions from whales and institutions, likely to take profits or initiate new positions as ETH hovers around the $4,500 mark this Tuesday.
Ethereum Price Analysis
Ethereum has been on an upward trend since August 3. The coin is currently trading close to the target of $4,500, less than 10% below its previous all-time high of $4,878. This price increase appears to be driven by strong demand from institutional investors and inflows into ETF funds and Ethereum-based investment products. Despite profit-taking from large wallet holders, Ethereum remains above the key psychological support level of $4,000.
Two key technical indicators, RSI and MACD, are supporting the current upward momentum. MACD is showing green histogram bars above the neutral line, indicating positive underlying momentum. RSI is at 76 and trending upwards.
Traders need to watch the RSI closely; a drop below 70 could create a sell signal for traders and potentially lead to a correction. ETH may then sweep liquidity at the $4,000 support level before bouncing back.
Chainlink, Polkadot, and Pump.fun
Chainlink, Polkadot, and Pump.fun have recorded growth from 6% to 9% in the past 24 hours. All three have seen double-digit growth over the past week. Compared to other altcoins, these tokens seem well-positioned to rise alongside Ethereum this week.
LINK is currently 15% away from the peak of $27.21 in 2025, with a target of $30.94, the high in December 2024. If a correction occurs, LINK could find liquidity at $20, a key psychological support level.
Both the RSI and MACD indicators support a bullish outlook for Chainlink, indicating further upside potential this week.
For Polkadot, the key resistance levels on the daily DOT/USDT chart are $5.362 (the high in May 2025), $8.044 (the high in January 2025), and $11.640 (the high in December 2024).
The momentum indicators for DOT on the daily timeframe are showing an upward trend, with the immediate target being $5.362. At the time of writing, DOT is trading at $4.167.
The 4-hour price chart of Pump.fun indicates the potential for price increases to R1, R2, and the token's targets of $0.004137, $0.004500, and $0.0050, respectively. The native token of the launch platform can find support at $0.003200, an important level. PUMP is currently fluctuating around $0.0040 at the time of writing this Tuesday.
Whales Are Optimistic About Ethereum
Tom Lee's Bitmine Immersion, part of Fundstrat, has announced plans to purchase more Ethereum through a $20 billion fundraising round. The company filed with federal regulators on Tuesday and is positioning itself in the race to become the largest Ethereum investment fund in the world.
Bitmine Immersion aims to raise $24.5 billion through a common stock issuance, with a share price of $0.0001. At the time of press, the company currently holds $2 billion in Ether.
Another whale, Arthur Hayes, recently repurchased $10.5 million of Ether at prices above $4,150 after taking profits from $8.3 million in holdings.
Large wallet investors are simultaneously taking profits and increasing their ETH positions, reinforcing demand for this altcoin.
Hayes told his followers on X that he "will never take profits again," further reinforcing the bullish outlook on Ethereum. With improved market sentiment, ETH is approaching the target of $5,000, trading above $4,500 at the time of writing this Tuesday.
Organizations Driving Demand for Ethereum This Week
Ethereum ETF data shows record capital inflows into the market of $1 billion on Monday. This cryptocurrency has surpassed Bitcoin, attracting significant capital from institutions. Data from Farside Investors shows capital inflows into spot Ethereum ETFs in the U.S. for five consecutive working days.
The total inflow of ETH ETFs currently stands at $10.85 billion, a significant milestone for the second-largest cryptocurrency.
The announcements from Bitmine and Ethereum treasury strategy companies are driving demand for this altcoin in the current cycle. This could act as a catalyst in the second half of 2025, supporting ETH prices to reach Tom Lee's target of $16,000.
Long Ethereum is the new preferred position for everyone
Derivatives market data shows that Ethereum has become a top risk trade on Web3 for investors. The ETH/BTC ratio is signaling this shift.
The increase in open interest for futures supports the bullish thesis, with the current level exceeding that of December 2024. This suggests that the bullish trend for ETH may continue, with derivatives traders betting on further growth.
Theo Coinglass, more than $105 million in short positions on Ethereum have been liquidated in the past 24 hours, indicating that bearish bets are being punished and funding long positions on derivatives exchanges.
The buy/sell ratio exceeds one, meaning many traders are optimistic about Ethereum and are positioning for the next price rallies. Therefore, Ethereum could return to its all-time high of $4,800 if optimistic sentiment continues to prevail and this altcoin's bullish trend is maintained this week.