Ethereum Whales Withdraw Supply, Pushing ETH Toward $4K
Ethereum whales and institutional buyers have driven a decisive break above $4,100, confirming a weekly breakout from a descending broadening wedge. U.S. spot ETH ETFs recorded a $727 million inflow in mid-July. On-chain data shows exchange reserves falling to 19.7 million ETH, the lowest since early July. Net spot inflows of $70 million have moved ETH into private wallets, highlighting growing accumulation.
Ethereum whales are increasing bullish activity. Aguila Trade closed its short positions and opened a $128 million long, now showing a $0.6 million unrealized profit. Another wallet withdrew 13,244 ETH (~$49.5M) from OKX to private storage. These moves signal reduced sell pressure and a looming supply squeeze.
Technically, ETH trades above key moving averages within an upward channel. Elliott Wave analysis places Ethereum in Wave V, supporting a potential rally toward $7,200 and even $10,000 in the longer term. Short-term targets range from $6,700 to $7,200. Traders should watch for sustained volume, continued ETF inflows, and a successful retest of the $4,100 level to confirm further upside momentum.
Bullish
The combined news of Ethereum breaking above $4,100, strong ETF inflows, and significant whale activity creates a bullish outlook for ETH. In the short term, the weekly breakout and accumulation by whales reduce selling pressure and support immediate rallies toward $4K and above. Continued net inflows into private wallets and declining exchange reserves point to a tightening supply that could exacerbate price moves if demand remains robust.
In the longer term, technical analysis, including the ascending channel and Elliott Wave Wave V indication, suggests that Ethereum may target $7,200 and potentially surpass $10,000. Institutional adoption through spot ETH ETFs provides a stable demand foundation, while Layer 2 scaling solutions improve network fundamentals. These factors together underpin sustained upward momentum for Ethereum.