Ethereum Price Prediction: Whale Buys 300 Million USD in ETH, Preparing for a Deeper Pullback or Setting New Highs?

Ethereum (ETH) experienced a pullback this weekend, falling 13% from recent highs, marking the first weekly decline in over a month last week, breaking the previously stable uptrend that had tested multi-week highs. However, today (4th) during the Asian session, Ethereum rebounded to $3,550. Is this a brief consolidation before a breakthrough, or the start of a deeper decline?

Ethereum has presented an interesting counter-narrative: a whale purchased $300 million worth of ETH, indicating that they believe this fall is temporary.

(Source: Arkham)

Arkham Intelligence's on-chain data shows that this massive purchase occurred during a price fall—this is a "buying on dips" strategy adopted by a confident institution. Currently, the market is under pressure from macroeconomic factors: a strengthening dollar and weak non-farm employment data have triggered risk-averse sentiment.

ETH price falls: down 13% from July high

Whale Purchase: 300 million USD ETH

Market Cap: $422 billion

Trading Volume: 28.8 billion USD (past 24 hours)

The divergence between price trends and whale behavior signals a potential reversal. Although many traders are exiting out of panic, this positive accumulation indicates prospects for a medium to long-term recovery. Meanwhile, Ether has become an institutional asset linked to the upcoming ETFs and on-chain upgrades.

Ethereum price tests key areas

(Source: Trading View)

Ethereum price predictions are turning bullish as ETH attempts to rebound from $3,374 (the lowest point since early July). The price is testing the 0.236 Fibonacci retracement level at $3,491, which has previously acted as both a support and resistance level.

A complete break through this level could lead to the price falling to $3,564 (38.2% Fibonacci level) and $3,623 (50%), eventually rebounding to $3,681 (61.8%), which is also $3,711 of the 50-period SMA.

Momentum remains weak. The 4-hour RSI is at 39, slightly below the neutral zone of 50. Without a bullish divergence or volume confirmation, the price may stagnate at the resistance level.

Breaking through the reversal candlestick at $3,564 (bullish engulfing) will further drive the ETH rebound. However, breaking below $3,491 or $3,564 would be bearish and could drag ETH back to $3,374 or even $3,267.

Ethereum Trading Outlook: Focus on the Breakthrough of 3,564 USD

If ETH breaks through $3,564, and both the trading volume and candlestick chart are bullish, traders can target $3,681 and $3,765. These are Fibonacci and historical resistance levels, representing a high-probability setup.

Trading Level:

Entry point: above $3,565

Stop loss: below $3,480

Target: 3,681 USD / 3,765 USD

Invalid: $3,491 did not materialize