Ethereum Strong Rebound! Whale Buys 550,000 ETH to Assist Long Positions in Hitting $4,500

After experiencing two consecutive days of fall, Ethereum (ETH) rebounded strongly by nearly 6% on August 20, currently reported around $4,310, maintaining the critical support level of $4,100. On-chain data shows that large holders (Whales) increased their holdings by more than 550,000 ETH during the pullback, countering retail investors' profit-taking. With technical indicators turning bullish, ETH is expected to challenge the $4,500 mark and even launch an attack towards the historical high.

Whale counter-trend accumulation, retail investors locking in profits

(Source: CryptoQuant)

According to CryptoQuant data, whales holding between 10,000 to 100,000 ETH have collectively increased their holdings by 550,000 ETH over the past week, even though the price has fallen by 10% during this period.

In contrast, small investors reduced their holdings by about 380,000 ETH during the adjustment period, realizing profits of over $4 billion. Santiment data shows that this wave of sell-off was mainly influenced by last week's higher-than-expected inflation data and the upcoming speech by Federal Reserve Chairman Powell, prompting investors to choose to reduce their risk exposure in advance.

Short liquidation drives price Rebound

Coinglass data shows that the pump of ETH on Wednesday triggered over $100 million in short position liquidations, providing additional momentum for the price rebound.

Previously, ETH futures net short positions once rose to the highs of December last year, leading to a decline in ETH prices of over 60% in the following months. However, if ETH continues the upward trend seen over the past few months, these short positions may trigger a new round of short squeeze.

Institution and digital asset custody continue to increase holdings

In addition to the whales buying on dips, the Digital Asset Trust (DAT) has also been actively accumulating ETH during the pullback period. According to data from StrategicETHReserve, several institutions, led by BitMine Immersion and SharpLink Gaming, purchased approximately 520,000 ETH last week, providing stable buying support for the market.

Technical Analysis: Bullish Target Aiming Directly at $4,500

(Source: Trading View)

The ETH/USDT daily chart shows that after gaining strong support near $4,100, ETH has rebounded, with both the RSI and Stochastic indicator returning above neutral levels, indicating that bullish momentum has resumed.

If ETH successfully breaks through the key resistance level of 4,500 USD, it is expected to retest the historical high of 4,868 USD and may form a bullish triangle pattern, injecting a new wave of upward momentum into the altcoin market.

Conclusion

Ethereum successfully held the key support at $4,100 and made a strong rebound with the support of whales and institutional funds. As the technical indicators turn bullish, ETH is expected to challenge $4,500 or even reach historical highs. Investors should closely monitor on-chain position changes and macroeconomic news, as this will determine whether the rebound can continue. For more real-time market data and on-chain analysis, please follow the official Gate platform.