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Ethereum has again taken prominence in the cryptocurrency market after leaping to a novel all-time high exceeding the $4,900 mark on Sunday. The upward trend, which elevated ETH into unexplored territory, showcased the resilience of buyers following weeks of consistent institutional accumulation and market momentum. Nevertheless, the price did not maintain these peaks for long. Ethereum has since retraced, falling back to the $4,600 area, where buyers are now attempting to establish support before the next upward movement.
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This pullback has ignited discussions among analysts. Some perceive the retracement as an indication of a possible local peak, warning that ETH might need a phase of consolidation before another breakout attempt. Others, however, remain strongly optimistic, citing robust fundamentals and increasing institutional interest as signs that Ethereum’s ascent is far from finished.
Adding further support to the bullish argument, crucial on-chain data indicates that Binance whales continue to heavily invest in Ethereum. Large spot and futures orders associated with these players have been consistently flowing, particularly after ETH confirmed its upward trajectory. This steady accumulation signifies confidence in Ethereum’s long-term outlook, even as short-term volatility continues to influence the market’s trend.
Binance Whales Accumulate Ethereum
According to prominent analyst Darkfost, Ethereum’s Average Order Size on Binance chart offers clear insight into the behavior of different groups, differentiating between retail investors and whales. Since July, a significant transformation has occurred: whale activity on Binance has surged. This indicates a growing trend of large-scale accumulation, with whale-sized spot and futures orders continuing to flow into the market as ETH approaches the $5,000 mark.
What makes this trend especially remarkable is the timing of whale participation. Unlike retail investors, who often attempt to buy early and benefit from potential gains, whales tend to prefer entering once a bullish trend has been validated.
Darkfost emphasizes that this pattern is visible now, as whale orders began to increase only after Ethereum reversed its previous downtrend and regained strong bullish momentum. This corroborates the notion that large players seek reduced risk and clearer confirmations before deploying capital at scale.
With both retail and institutional participants aligning, the upcoming weeks could be pivotal in determining if ETH successfully breaks into new price exploration. If whales continue to purchase at this rate, Ethereum’s rally might extend far beyond its 2021 peaks.
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Testing Critical Support Level
Ethereum (ETH) is presently priced around $4,598 after a sharp pullback from its new all-time high near $4,900. On the 4-hour chart, the structure indicates that ETH is still upholding a bullish trend, although momentum has diminished following last week’s explosive surge.
The 50 SMA ($4,455) and 100 SMA ($4,435) are now converging just below current price levels, functioning as immediate dynamic support. This cluster reinforces the bullish perspective as long as ETH can stay above it. A deeper decline toward the 200 SMA ($4,068) would signify a broader corrective phase and potentially prolong the consolidation before another upward push.
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The recent pullback indicates that sellers are active near the $4,900–$5,000 zone, which now constitutes critical resistance. A breakout above this threshold would pave the way to unexplored territory and likely hasten momentum, with targets potentially reaching toward $5,200 and above.
On the downside, a failure to maintain the $4,450–$4,400 support area could shift sentiment to bearish in the short term, with traders eyeing $4,200 as the subsequent key demand zone.
Featured image from Dall-E, chart from TradingView
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