Ethereum has entered the spotlight once again after reaching a multi-year high above $4,790, only to retrace toward critical demand levels. The move highlights ongoing volatility as bulls remain patient, waiting for a breakout beyond the $4,900 level, a threshold that would push ETH into uncharted price territory. While the retracement may seem like a pause, market structure still favors strength, with higher lows forming and momentum shifting toward accumulation.
What makes the current setup even more compelling is the surge in whale activity. Arkham Intelligence data revealed that three new whale addresses collectively purchased $279.5 million worth of ETH in just the past 24 hours. These transactions underscore confidence from deep-pocketed players at a moment when Ethereum is consolidating below key resistance. Such large-scale accumulation typically signals expectations of further upside, aligning with growing optimism that ETH could soon break above its historic ceiling.
This scale of accumulation places Bitmine among the most influential players in the Ethereum ecosystem, with its wallet activity now drawing comparisons to major institutional participants. The timing of these buys is especially significant, arriving as ETH consolidates just below the $4,900 mark, with bulls watching closely for a breakout into uncharted price territory.
What’s more, this accumulation trend aligns with moves from companies like Sharplink Gaming, which have also been positioning aggressively into Ethereum. The shift highlights a broader pattern: institutional actors are increasingly viewing ETH as a long-term strategic asset, not just a speculative play.
Adding further fuel to the bullish outlook, exchange supply is drying up while OTC desks report running out of Ethereum. This supply squeeze is historically a precursor to major rallies, as demand from whales and institutions collides with reduced availability. If these dynamics persist, Ethereum may be entering one of its most explosive phases yet, with whale behavior acting as the clearest signal of confidence.
Ethereum’s 4-hour chart highlights a healthy pullback from the recent peak near $4,790, with the price now consolidating around $4,414. This decline comes after a strong multi-week rally, suggesting that the move is more of a cooldown phase rather than a full trend reversal.
The 50-period SMA at $4,407 is now acting as immediate support, making this level a critical short-term battleground. If bulls can defend it, momentum could quickly shift back toward the $4,600–$4,800 resistance area, where ETH was recently rejected. A confirmed breakout above $4,900 would validate bullish strength and set the stage for fresh all-time highs.
On the downside, the 100-SMA ($4,025) and 200-SMA ($3,822) remain deeper support zones that could absorb stronger selling pressure if the $4,400 area fails. Importantly, trading volume shows heavy activity during the rally followed by lower participation during the retrace, implying sellers are not in full control.
Overall, Ethereum remains in an uptrend, but the current consolidation will determine its next leg. Holding above $4,400 keeps bulls in control, while a drop below could trigger a short-term correction before the uptrend resumes. This makes the coming sessions pivotal for ETH’s trajectory.
Featured image from Dall-E, chart from TradingView
