Coinspeaker Ethereum (ETH) Price Rebounds Fueled by Rising Whale Demand amid Heightened Fear of Crypto Capitulation
Ethereum (ETH) price rebounded from a crucial support level following the crypto crash that wiped out more than $1.6 billion from leveraged traders in the past two days. The top-tier altcoin rallied more than 14 percent in the past 24 hours to trade about $2,514 on Tuesday during the European session.
From a technical standpoint, Ethereum’s price against the US dollar rebounded from a rising logarithmic trendline in the weekly time frame. Despite August being a bearish month for the entire crypto industry, Ethereum price only needs to maintain above the rising logarithmic trendline to ensure further bullish momentum in the fourth quarter.
Top Reasons Ethereum Price Rebounded
Ethereum price quickly followed the Bitcoin price rebound in the past 24 hours. Consequently, the total crypto market cap rallied over 8 percent to reclaim $2 trillion on Tuesday.
The crypto industry rallied in tandem with the Asia stock market rebound led by the Nikkei 225 and the Asia Dow. Similarly, the European stock market opened Tuesday in a bullish outlook led by the FTSE 100, and DAX. A similar rebound is expected in the US stock market later today after registering heavy losses on Monday.
Meanwhile, long-term investors seized the opportunity of heightened fear among the crowd, as shown by the 17 percent of Ethereum’s fear and greed index.
Ethereum Fear and Greed Index is 17 — Extreme FearCurrent price: $2,419 pic.twitter.com/YbAp5yi1gX
— Ethereum Fear and Greed Index (@EthereumFear) August 6, 2024
On-chain data shows that several crypto whales made strategic Ether purchases in the past 24 hours from different exchanges. For instance, Justin Sun, the founder of the Tron (TRX) network, withdrew 14,884 Ether, worth about $35 million, from Binance in the past 24 hours.
As a result, Sun currently holds about 392,474 Ether units, worth nearly $1 billion. Notably, Sun announced a $1 billion fund on Monday to reduce FUD in the market and help increase the crypto liquidity.
Another whale was spotted purchasing Ether from HTX after depositing $38 million USDT.
A whale withdrew 38M $USDT from #HTX, then spent 37M $USDT to buy 16,236 $ETH($40.76M) at $2,279 9 hours ago.
Currently, the unrealized profit is $3.76M!https://t.co/MQsz6EEpLH pic.twitter.com/f369C3yIBk
— Lookonchain (@lookonchain) August 5, 2024
Meanwhile, the US-based spot Ether ETFs had a positive day on Monday after registering a net cash inflow of more than $48 million. Despite the notable cash outflows from Grayscale’s ETHE, BlackRock’s ETHA balanced with a net cash inflow of about $47 million. Notably, the rest of the spot Ether ETF issuers apart from Invesco’s QETH and 21Shares’s CETH registered a positive cash flow on Monday.
Midterm Price Expectations
Ethereum price has been forming a rising trend since early last year, characterized by higher highs and higher lows in the weekly time frame. A similar V-shaped rebound to the 2020 Covid-19 crypto crash is expected to happen in the coming weeks and possibly yield the highly anticipated parabolic phase of the macro bull run.
However, if Ethereum’s price consistently closes below the support/resistance level around $2,124 in the coming weeks, the bears will continue to be in control.
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Ethereum (ETH) Price Rebounds Fueled by Rising Whale Demand amid Heightened Fear of Crypto Capitulation
