Ether whale buys nearly $13M ETH, but ETH still needs to reclaim $2.7K for the next leg up

Whales, or large Ether-holding entities, continue accumulating as Ether remains stuck under a key psychological resistance line.

A whale has acquired 5,000 Ether (ETH) tokens worth over $12.8 million at current valuation.

The last time this whale address bought the dip was when Ether fell to the $2,100 mark, shortly before it recovered to $3,100, according to an Aug. 12 X post by Scopescan.

Investors often look at whale buying patterns to determine the sentiment around the underlying asset. The last time this whale bought Ether marked the local price bottom just before a strong recovery.

Ether needs to surpass $2,700 for more upside: Analyst

Ether staged a significant recovery following last week’s $510 billion crypto market sell-off.

Ether price rose over 18% during the past week to trade at $2,655 as of 11:08 am UTC, according to CoinMarketCap data.

Despite the recovery, Ether needs to decisively reclaim the $2,700 resistance for more upside momentum, according to Aurelie Barthere, principal research Analyst at Nansen.

The analyst told Cointelegraph:

“There has already been a dead cross of ETH (50-day below 200-day). ETH needs to hold above $2,700, or the resistance tested yesterday and in January 2024."

A “death cross” is a technical chart pattern that reflects short-term price weakness compared to the long-term average moving price of the underlying asset. A death cross can often signal a favorable opportunity to purchase an asset at a discounted price.

Ether ETFs: Net outflow spree continues

Institutional inflows remain disappointing, despite the historic launch of the first spot Ether exchange-traded funds (ETFs) in the US, which debuted for trading on July 23.

The nine US spot Ether ETFs saw $15.8 million worth of cumulative negative outflows on Aug. 9, according to Farside Investors data.

Since launch, the spot Ether ETFs have recorded $406 million worth of cumulative net outflows, partially contributing to Ether’s lagging price action.

ETF inflows can significantly contribute to a cryptocurrency’s price appreciation. For Bitcoin (BTC), ETFs accounted for about 75% of new investment in the cryptocurrency by Feb. 15 as it surpassed the $50,000 mark.