Ethereum Holds Above $3,500 as Whales Borrow for Accumulation Amid ETF Outflows

• Ethereum price action remains resilient above $3,500, with key support at $3,450 monitoring for breakout toward $3,700.

• A major whale borrowed $120 million via Aave and moved funds to Binance for Ethereum purchases, following prior acquisitions of over 385,000 ETH.

• Spot Ethereum ETFs recorded $183.7 million in outflows, led by BlackRock’s $91 million reduction, yet on-chain data shows declining exchange balances indicating accumulation.

Ethereum price above $3,500 surges with whale borrowing $120M for ETH buys amid $183M ETF outflows. Discover technical setups, on-chain trends, and market impacts driving this crypto momentum. Stay informed on Ethereum’s next move.

What is Driving Ethereum’s Price Above $3,500?

Ethereum price above $3,500 is primarily fueled by significant whale activity and shifting institutional dynamics. A prominent whale recently borrowed $120 million in USDT through the Aave protocol to facilitate further ETH accumulation on Binance, building on previous holdings exceeding 385,000 ETH valued at $1.33 billion. Despite $183.7 million in ETF outflows, declining exchange balances suggest long-term holders are securing positions, supporting price stability in the $3,450 to $3,700 range.

How Are Whale Movements Influencing Ethereum’s Market Liquidity?

Whale movements are playing a pivotal role in Ethereum’s market liquidity by injecting substantial capital and altering supply distribution. According to on-chain analytics from LookonChain, the “66kETHBorrow Whale” executed a $120 million USDT borrow from Aave, transferring it directly to Binance for presumed ETH purchases. This wallet had earlier amassed 385,718 ETH, equivalent to approximately $1.33 billion at current valuations, demonstrating a pattern of aggressive accumulation.

Further transfers totaling over 110,000 ETH, worth around $380 million, occurred between Aave’s Wrapped Token Gateway and private wallets. Such large-scale operations often precede volatility spikes but also enhance liquidity in decentralized finance ecosystems. Data from Coinbureau highlights that these actions coincide with Ethereum’s price holding firm, as whales reposition assets away from exchanges, reducing available supply and potentially bolstering upward pressure.

Experts note that concentrated whale involvement can stabilize short-term trends while introducing risks of sudden sell-offs. For instance, Ethereum network metrics show staking participation rising to over 30% of total supply, per Ethereum Foundation reports, which mitigates sell pressure from these movements. Overall, this whale strategy underscores institutional confidence in Ethereum’s scalability upgrades and layer-2 adoption, contributing to sustained liquidity flows.

Ethereum trades above $3,500 as whales borrow millions to buy more ETH and ETF outflows reshape short-term market sentiment.

• Ethereum remains above $3,500, with traders watching $3,450–$3,700 levels to confirm the next breakout or downward continuation trend.
• A whale borrowed $120 million through Aave, and transferred the funds to Binance for large-scale Ethereum accumulation and liquidity movements.
• ETF outflows reached $183.7 million,which is a reflection of shifting institutional exposure to Ethereum’s market position.

Ethereum is sustaining momentum above $3,500 as institutional withdrawals intensify.Market dynamics, evolving liquidity patterns and concentrated accumulation are shaping short-term trading activity.

Technical Chart Setup and Market Scenarios

Ethereum’s price has reclaimed the $3,500 level, a region viewed as crucial for sustaining short-term strength. ETH/USDT daily chart indicates resistance between $3,650 and $3,900, with key demand zones seen from $3,160 to $3,320. 

ETH is trading near the lower end of its mid-range following a recent decline.The analysis presents three possible paths.

                                                                                                                                                                       Source Ted on X

If ETH breaks $3,648 resistance it could push towards targets around $3,702 to $3,900. However,a rejection would lead to a temporary pullback toward $3,320 before another upward attempt. 

A bearish outcome could occur if ETH fails to maintain the $3,320 and $3,166 supports, sending prices closer to $3,000.Current sentiment remains cautiously optimistic as higher lows form around $3,200.

Whale Borrowing and On-Chain Movements

Data shared by Coinbureau reveals that a whale wallet, nicknamed “66kETHBorrow Whale,” borrowed $120 million USDT from Aave and transferred the funds to Binance, potentially preparing to purchase more Ethereum. The same wallet previously acquired 385,718 ETH worth about $1.33 billion.

The whale has also conducted multiple transfers of more than 110,000 ETH, valued around $380 million, between Aave’s Wrapped Token Gateway and personal wallets.Such huge movements often precede market adjustments through large purchases and strategic restructuring. 

These activities are signalling growing whale involvement, which could influence Ethereum’s short-term liquidity and volatility. 

ETF Outflows and Market Sentiment

Ethereum ETFs saw outflows of around $183.7 million yesterday, with BlackRock alone selling $91 million in ETH holdings.On-chain data shows that ETH balances on centralized exchanges have been steadily declining since mid-August. 

This trend looks like an accumulation phase, as investors move tokens to private wallets or staking contracts.

While falling exchange balances typically support upward price movement, recent months show a divergence,which may have been likely influenced by broader macroeconomic factors.

Despite these outflows, Ethereum trades at $3,506.73, down 0.42% over the past 24 hours but still showing a 3.58% gain for the week.Ethereum remains range-bound, supported by steady long-term accumulation and institutional positioning.

Frequently Asked Questions

What Impact Do Ethereum ETF Outflows Have on Price Stability?

Ethereum ETF outflows of $183.7 million, including $91 million from BlackRock, reflect short-term profit-taking by institutions. However, this contrasts with on-chain accumulation, where exchange balances have dropped since mid-August, suggesting investors are holding ETH in private wallets for long-term gains, ultimately supporting price stability above $3,500.

Why Are Whales Borrowing to Buy More Ethereum Now?

Whales are borrowing funds, such as the recent $120 million USDT loan via Aave, to capitalize on Ethereum’s price dip near $3,500 and build larger positions. This strategy anticipates network upgrades and increased adoption, as evidenced by prior accumulations of over 385,000 ETH, positioning them for potential rallies toward $3,900.

Key Takeaways

• Ethereum’s Resilience: Price holds above $3,500 despite ETF outflows, driven by whale accumulation and declining exchange supplies.
• Whale Influence: A $120 million borrow signals strong investor confidence, with transfers enhancing DeFi liquidity and reducing market sell pressure.
• Market Outlook: Monitor $3,450 support and $3,650 resistance; breaking higher could target $3,900, while failure risks a dip to $3,000—consider staking for yields during range-bound trading.

Conclusion

In summary, Ethereum price above $3,500 reflects a balance of whale-driven accumulation and institutional ETF adjustments, with on-chain data from sources like LookonChain and Coinbureau underscoring growing liquidity in private holdings. As Ethereum’s technical setup forms higher lows around $3,200, the network’s evolution toward scalability positions it for sustained growth. Investors should track upcoming resistance levels and consider diversified strategies to navigate volatility ahead.