Ethereum (ETH) has just issued three strong bullish signals, pushing the price above $4,000. Adding momentum to the rise, major players like US President Donald Trump and the mining group Bitmine are reported to have invested millions of dollars in ETH.
Meanwhile, retail investors are fleeing, potentially missing out on the long-term buying opportunity that institutions are seeing.
Ethereum: Triple bullish setup!
The rise above $4,000 for Ethereum is backed by important data. The Spot Taker CVD index shows stable net buying dominance from June to August, driving the breakout from $2,000 to $4,000, while also reflecting strong accumulation activity in the spot market rather than just short-term chasing.
Open interest (OI) has increased in parallel with prices, reaching $29 billion – near historical highs. Thus, new capital is flowing in, with institutions being the main driving force behind the growth.
Meanwhile, the ETH reserves on exchanges have dropped to 18.38 million – the lowest level in 12 months as of the time of writing. The supply shortage, combined with soaring demand, has created a classic squeeze scenario.
This further reinforces the scenario of ETH prices continuing to rise.
Sharks support the rise of ETH
Adding to ETH's bullish setup, large investors are aggressively participating. Right at the moment when spot demand and supply shortages align, President Trump purchased 1,911 ETH worth $8.6 million.
As of the time of writing, the mining company Bitmine Immersion Technologies (BNMR) has increased its holdings, purchasing 106,485 ETH (over 470 million dollars) in just the past 10 hours.
The total amount of ETH held by this company has now reached 1.29 million ETH, equivalent to $5.75 billion. Meanwhile, an unidentified organization has quietly withdrawn 92,899 ETH ($412 million) from the Kraken exchange over the past four days through three new wallets.
The bullish momentum is cooling off, but the structure remains solid.
As of the time of writing, ETH is trading at $4,409 after a slight pullback from the recent peak.
The RSI index hovers around 67, just below the overbought zone, indicating that the bullish momentum is temporarily cooling but has not yet signaled a reversal.
Meanwhile, the MACD indicator remains bullish, with both the MACD line and the signal line trending upwards. Despite three consecutive red candles, trading volume is declining – a sign of a consolidation phase.
As long as the main momentum indicators remain positive, ETH's structure is kept in a bullish state, with the possibility that any dips will be absorbed thanks to continuous accumulation from institutions and spot demand.