Ethereum recovered from $1,820 last week and traded within an ascending channel throughout August. At this time, ETH was trading near $1,923, reflecting an increase of 1.01% over the past 24 hours. Renewed whale activity bolstered the recovery. Onchain Lens reported that two whales accumulated 80,000 ETH valued at $152 million. One whale withdrew 30,000 ETH, valued at $57.21 million, from Coinbase Prime. The whale subsequently allocated the tokens among three newly created wallets. Another large investor acquired 50,000 ETH, valued at $95.73 million, from a Fidelity-associated wallet. That wallet subsequently transferred 36,530 ETH, valued at $69.94 million, to a different address.
Meanwhile, Ethereum’s Whale Sentiment Index remained elevated above 60 for a duration of two days. It sustained a position above 50 for a duration of six consecutive days. At this juncture, the index was positioned around 66, indicating substantial purchasing activity among major stakeholders. This buying activity may have bolstered the demand side for ETH. However, one older whale diverged from the prevailing trend. A long-term investor divested from ETH after maintaining the asset for over three years.
According to Lookonchain, the total losses incurred by the wallet surpassed $19 million. The whale acquired ETH at an average price of $2,723 during the period spanning February 2022 to March 2023. It subsequently staked the holdings. The wallet executed the sale of 7,323 ETH, generating proceeds of $13.96 million, which resulted in a loss of $6 million. That sale indicated that certain long-term holders were not prepared to endure additional market weakness. Bolstered by significant whale accumulation, Ethereum’s upward momentum remains robust. In fact, the altcoin’s SMI Ergodic Indicator has made a bullish crossover, rising to 0.1.
The upward trajectory indicates that the downside pressure has diminished considerably, and bullish momentum is increasingly solidifying. Additionally, ETH is presently positioned above both the 20 and 50-day moving averages, while it is also testing the 100-day moving average. This indicates that the short-term momentum is significantly biased toward the upside, and a breach of the 100-day EMA will confirm this upward movement. Therefore, if demand remains robust, ETH is poised to close above $1923, thereby establishing a trajectory to confront the 200-day EMA at $2147.