Ethereum (ETH) has witnessed a remarkable recovery, surging over 8% in the last 24 hours to reach $2,454.55. This bounce-back comes after a tumultuous period marked by a significant market crash, where the total crypto market lost approximately $633 million. However, the market has shown resilience, with Ethereum leading the charge alongside Bitcoin. The total market capitalization has rallied by around 5%, climbing back above the $2 trillion mark.
One of the major drivers behind Ethereum's recent price surge is the aggressive buying by whale investors. For instance, Justin Sun, the founder of TRON, has made headlines with a substantial move in the Ethereum (ETH) market amid a challenging period for cryptocurrencies. According to Spot On Chain, Sun has withdrawn 14,884 ETH from the crypto exchange Binance, a transaction valued at approximately $35.97 million based on the current Ethereum price. This strategic purchase comes as Ethereum attempts to recover from recent losses following a significant market crash.
Sun's latest acquisition is expected to inject a dose of bullish sentiment into the market, highlighting his continued confidence in Ethereum's potential. Notably, this is not Sun's first significant Ethereum purchase; since February, he has amassed 392,474 ETH in multiple transactions at an estimated cost of $1.19 billion, which is now valued at around $995 million due to the recent downturn. His consistent buying behavior suggests a long-term bullish stance on Ethereum, potentially influencing market perceptions and investor sentiment.
Additionally, a whale withdrew 16,236 Ether, valued at approximately $40 million, from the HTX exchange, further indicating strong buying interest among large investors.
The broader market sentiment also plays a crucial role in Ethereum's price movements. The crypto market, led by Bitcoin (BTC) and Ethereum, rallied by around 5% to regain a market cap above $2 trillion. This recovery comes after the worst crash of 2024, reflecting the market's resilience and the shifting investor sentiment towards a more optimistic outlook.
Technical analysis shows several green lights for Ethereum. Price bounced off $2,171 support and went up over 8% to hit $2,547 daily high. This is a big recovery from the recent lows and Ethereum is looking to reach all time high.
Bollinger Bands on a 4 hour chart shows price is near the middle band which means more up. MACD also shows a bullish crossover with MACD line above the signal line. This is a signal of trend reversal or continuation of the up trend.
RSI is recovering from oversold levels and is approaching neutral. This means selling pressure has subsided and there is room for more upside.
US based spot Ether ETFs have also seen inflows. ETHV and FETH saw $1.64 million inflows on Monday. This means more investors are getting interested and confident in Ethereum as an investment vehicle.
The bounce from support and the surge means strong buying interest and market confidence after a major sell-off. As Ethereum shows resilience, next levels to watch are $2,547 and $2,600 resistance.
In 1 day chart, the lower price rejection in the daily candle and the intraday jump of 4.81% has formed a bullish candle trying to break the previous day’s fall. As long as price is above 23.60% Fibonacci retracement at $2,477.16, the chances of a bounce is higher.
Despite the recent market downturn, the crypto market is expected to be bullish in Q4 after a rough August and potentially September. This is reflected in the fear and greed index which dropped to 17% extreme fear but now showing signs of recovery.