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.

Related: Bitcoin price drops below $59K as institutions stop buying stablecoins

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.

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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.

Magazine: Ethereum price will lag for ‘months’ as Bitcoin surges: X Hall of Flame, Roman