Ethereum surged by more than 18% in the past hours, leading the broader altcoin market at this time. Ethereum has reclaimed the $2,000 threshold as positive momentum propels it into elevated territories. Leverage, new investors, supply dynamics, and a breakout from an accumulation pattern have collectively driven this sudden uptick. Can bulls maintain this upward trajectory and remain above $2K? In a strategic move to enhance leverage, a significant market participant established a new wallet and deposited $20 million in USDC on the Hyperliquid exchange. The amount was deposited in three transactions: $10 million, $9.41 million, and $589K.
Subsequently, the whale initiated a 4x leveraged long position of 20K ETH, amounting to $45.38 million. The position coincided with the sudden surge, indicating that the whale may have had advance knowledge of the movement. Technically, Ethereum was poised to break out from a sideways range. Consequently, the whale currently holds an unrealised profit of $6.66 million. Ethereum Spot ETFs have contributed to the increased buying pressure, according to data. Participants acquired $189.15 million before the 18% shift, marking the highest single-day purchasing volume in a span of 10 months. BlackRock, Fidelity, and Greyscale have emerged as frontrunners in the ETH Spot ETF market, with respective inflows of $122 million, $36.54 million, and $16 million.
Even from a broader perspective, investors continued to purchase Ethereum with vigour. According to Santiment data, the exchange supply of ETH has experienced a decline of 15% over the course of eleven weeks. The supply decreased from 7.70 million on June 2 to 6.54 million on August 18, with approximately 1.15 million ETH coins removed from circulation. The charts indicated that the altcoin first suggested a bottom on June 6th, following a rebound at $1,549. The potential bullish reversal was reinforced by the double bottom, with the neckline having been breached at $1,800. The retest of the breakout persisted for a month prior to the eventual breakout. Currently, Ethereum seems to be on a trajectory toward $2,500.
The Bull/Bear Power has reached its peak for the year, standing at approximately 528 at the time of this writing. Furthermore, the number of large transactions has surged from 2,690 to 6,910, representing an increase of nearly threefold within a single day. While this move indicates a changing market structure, bulls must drive ETH above $2,500 for confirmation. The zone serves as the latest lower high within the prevailing bearish market structure. If the zone were established as support, Ethereum would exhibit bullish tendencies in the midterm. Otherwise, the supply zone of $2,500 could reverse the current aggressive buying pressure, though it appears improbable.
