Ethereum entered the volatile phase after beating its 2021 record high last week, sparking both excitement and attention throughout the market. After the surge, the ETH retraced and tested critical demand levels. There, buyers intervened to protect their support. The Bulls are showing resilience, and analysts point out that Ethereum could gather past $5,000 in the short term.
Still, the risk of deeper corrections is heavier, increasing uncertainty among traders and investors. Fear is beginning to creep into emotions as some wonder if Ethereum rallies are sustainable or if another pullback is on the horizon.
However, this environment highlights the undeniable trend. Whales are accumulating. Arkham Intelligence has revealed that yesterday alone, signaling trust from the largest market participants, collectively bought the addresses of nine whales that purchased around $450 million worth of Ethereum yesterday alone. This wave of accumulation highlights how deep investors are taking advantage of retracement, with the next leg preparation potentially being prepared upwards.
Ethereum whales signal trust
According to Arkham Intelligence, Ethereum whales are making a critical move that could shape the next stage in the market. Data shows that nine large addresses purchased $456.8 million worth of ETH in one day. Of these, five wallets flowed directly from Bitgo, the main institutional custodian, while the other four gained positions through Galaxy Digital’s off-the-shelf (OTC) desks. These transactions reflect not only the trust of individual whales, but also the growing role of facility-grade platforms to promote the accumulation of large-scale Ethereum.
This surge in whale activity highlights the key market dynamics. Deep pocket investors are positioning themselves as the next leg could be higher in Ethereum price cycle. Historically, whales accumulation during periods of volatility provided a strong foundation for a critical narrative and preceded significant upward momentum. As ETH has already tested key demand zones after breakouts past its 2021 history high, these influxes could help stabilize price action and build momentum towards unknown territory.
The public company is also photographed after crossing the whale. Companies such as Bitmine and Sharplink Gaming have recently disclosed their Ethereum positions, further examining the role of ETH as a facility-grade asset. Their involvement reflects what Bitcoin experienced during the early corporate adoption phase. Public companies add BTC to their balance sheets, increasing the trust of a strong market.
In summary, the combination of whale accumulation, institutional OTC purchases and public company recruitment creates a clear picture. Confidence in Ethereum’s long-term trajectory is strengthened. While short-term risks remain, these trends reinforce bullish cases where ETH can move towards price discovery and exceed $5,000. The market is looking closely, but whales and institutions seem to be leading the fees.
Ethereum holds the ground for Bulls Eye as $5,000
Ethereum is trading around $4,592 after rebounding from a sharp setback from a local high of nearly $4,850. The 4-hour chart shows once again the intensity of ETH above the 50- and 100-day moving averages, indicating that buyers are intervening to protect key levels. The move restores confidence in short-term uptrends, despite the volatility keeps traders in place.
The wider picture remains supportive. With its 200-day moving average of $4,119, Ethereum has a comfortable cushion that highlights its resilience despite recent fluctuations. Holding on a faster average will not only stabilize momentum, but also set a stage of another attempt at resistance. The important barrier ahead was $4,800, where sellers concluded the rally earlier. A decisive break could clear the path to $5,000. This is a milestone where analysts believe they could fuel fresh enthusiasm and kickstart new price discoveries.
Still, there is still a risk of another pullback. A drop below $4,400 could send ETH back into the $4,200 demand zone, causing pre-purchase pressure. But for now, emotions are cautiously and bullish. The whales continue to accumulate, technology remains constructive, and Ethereum appears poised to test higher levels as momentum is transmitted.
Dall-E special images, TradingView chart
