Ethereum surged above $3,700 on August 5, fueled by significant whale accumulation and institutional buying, but macroeconomic challenges continue to limit its ability to surpass $3,800 this week.
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Ethereum price is 148% above its year-to-date low despite recent volatility.
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New whale wallets have acquired over $3 billion worth of ETH in just two days.
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ETF outflows and macroeconomic uncertainty are restraining Ethereum’s upward momentum.
Ethereum rallies past $3,700 amid whale and institutional buying; macro risks cap upside. Stay updated with the latest ETH market insights on COINOTAG.
What is driving Ethereum’s recent price surge above $3,700?
Ethereum’s recent price increase is primarily driven by renewed accumulation from whales and institutional investors. Large holders have been actively buying, with new wallets acquiring substantial amounts of ETH, signaling confidence in a potential price rebound despite broader market uncertainties.
How are whales and institutions influencing Ethereum’s market dynamics?
Data from Santiment shows a rise in wallets holding over 10,000 ETH, indicating increased whale activity. Lookonchain reports that 14 new whale wallets accumulated more than 856,000 ETH, valued at nearly $3.16 billion, within two days. Institutional interest is also growing, with the Strategic Ethereum Reserve increasing its holdings from under $3 billion to over $10.8 billion in six weeks, representing 2.45% of ETH’s total supply.
Source: Santiment
What challenges could limit Ethereum’s price from breaking above $3,800?
Despite strong buying from whales and institutions, Ethereum faces resistance near the $3,800–$3,900 range. ETF outflows totaling $129 million last week and ongoing macroeconomic concerns, including trade tensions and labor market risks, dampen investor enthusiasm. Additionally, ETH is close to a cluster of long liquidation levels between $3,620 and $3,660, which could trigger selling pressure if breached.
ETH Liquidation map : Source: CoinGlass
What are the potential short-term price scenarios for Ethereum?
If Ethereum holds above $3,650, bulls may push it toward short liquidation clusters near $3,730–$3,780. However, a drop below $3,650 could lead to cascading liquidations, driving ETH toward secondary liquidity pools around $3,580 or $3,540. Market watchers remain cautiously optimistic about a potential recovery to $4,000, supported by bullish technical indicators.
$ETH weekly chart is giving BTFD vibes.
Perfect support retest, and now buyers have stepped in.
Send ETH above $4,000 now. 🚀 pic.twitter.com/A2GDBxTPIo
— Ted (@TedPillows) August 4, 2025
Frequently Asked Questions
How significant is whale accumulation for Ethereum’s price movement?
Whale accumulation is a strong bullish indicator as large holders typically buy in anticipation of price appreciation. Recent data shows new whale wallets acquiring over 856,000 ETH, signaling increased confidence in Ethereum’s near-term outlook.
Why is Ethereum struggling to break above $3,800 despite institutional buying?
Macroeconomic uncertainty and ETF outflows are limiting Ethereum’s upward momentum. Investors remain cautious due to global economic risks, which weigh heavily on risk assets like ETH.
How to interpret Ethereum’s current market signals?
- Monitor whale wallet activity: Increased accumulation often precedes price rallies.
- Watch liquidation zones: Price levels between $3,620 and $3,660 are critical for short-term support.
- Consider macroeconomic factors: Global economic uncertainty continues to influence investor behavior.
Key Takeaways
- Whale accumulation: New wallets have bought over $3 billion in ETH, signaling strong buying interest.
- Institutional inflows: Strategic Ethereum Reserve assets surged to $10.8 billion, reflecting growing corporate confidence.
- Market risks: ETF outflows and macroeconomic uncertainty limit Ethereum’s ability to break above $3,800.
Conclusion
Ethereum’s recent rally above $3,700 is driven by significant whale and institutional accumulation, highlighting renewed confidence among large investors. However, persistent macroeconomic headwinds and ETF outflows continue to cap upside momentum. Market participants should closely watch key support and liquidation levels as Ethereum navigates this critical price zone, with potential to either consolidate or push toward $4,000 in the near term.
