Ethereum surged past $3,700 earlier on Aug. 5 as whale and institutional accumulation gained momentum. But can it reclaim the $3,800 level by week’s end?
According to data from crypto.news, Ethereum — the largest altcoin by market cap — jumped 5.7% to hit an intraday high of $3,730 on Tuesday, Aug. 5, before pulling back to around $3,650 at the time of writing. The current price reflects a 148% gain from its year-to-date low.
This latest rally follows Ethereum’s recent attempt to break above $4,000 in late July. However, it faced rejection near $3,900, pressured by broader macroeconomic headwinds that dampened institutional risk appetite and a noticeable drop in total value locked (TVL) across its ecosystem.
ETH is experiencing a resurgence in whale accumulation and institutional investment
Ethereum’s rebound this week seems closely linked to fresh accumulation by whales and major entities. Data from Santiment shows a notable increase in wallets holding over 10,000 ETH in recent days, suggesting that large holders are positioning themselves for potential gains.
On Aug. 4, two newly created wallets acquired nearly 40,000 ETH—worth approximately $142 million—according to data from Lookonchain. The buying momentum accelerated on Aug. 5, when three more wallets accumulated an additional 63,837 ETH valued at around $236 million.
In total, Lookonchain reports that 14 newly established whale wallets have collectively amassed over 856,000 ETH—worth nearly $3.16 billion—in just two days.
This level of accumulation, especially from fresh wallets, often signals growing confidence from high-net-worth individuals and institutional players. These entities typically take long-term positions, accumulating ahead of anticipated price moves. Their activity is also closely tracked by retail investors, who often view such movements as a bullish indicator.
Beyond whale activity, institutional interest in Ethereum is also gaining momentum. There’s been a noticeable rise in Ethereum-focused treasuries and structured investment products.
One of the standout developments is the rapid growth of the Strategic Ethereum Reserve (SER), which tracks institutional ETH holdings across major funds, corporate treasuries, and asset managers.
Just six weeks ago, the SER’s assets under management were under $3 billion. That figure has now soared to over $10.8 billion, with the reserve now controlling 2.45% of Ethereum’s total supply—up from just 1% in June.
Fueling this surge, Nasdaq-listed gaming firm SharpLink, a key participant in the SER, added 18,680 ETH (valued at approximately $66.63 million) to the reserve on Aug. 4. This move underscores the growing view among corporate treasuries that Ethereum is a strategic long-term asset.
What’s next for ETH?
Despite the surge in whale accumulation and renewed institutional interest, Ethereum still lacks the momentum needed to firmly break through the key $3,800–$3,900 resistance zone.
Although fresh capital has entered the market via new whale wallets and treasury inflows, these investments have yet to spark a broader shift in overall market sentiment.
Last week, Ethereum-focused ETFs recorded outflows totaling $129 million, highlighting continued caution among mainstream investors. At the same time, broader macroeconomic uncertainty—including trade tensions and concerns over the U.S. labor market—is keeping pressure on risk assets.
Without a strong narrative or immediate catalyst, Ethereum’s current rally remains fragile and susceptible to a pullback.
Supporting this caution, data from CoinGlass shows that ETH is hovering dangerously close to a dense cluster of long liquidation levels between $3,620 and $3,660. These high-intensity zones on the 24-hour heatmap signal a concentration of overleveraged long positions that could trigger a cascade of liquidations if prices dip further.
This setup presents a short-term downside risk for Ethereum. If ETH fails to hold above the $3,650 level, a drop into the $3,620–$3,660 range could trigger a wave of cascading liquidations.
Such a move would likely amplify selling pressure, potentially driving prices lower toward secondary liquidity pools around $3,580 or even $3,540—zones where additional long positions are exposed. These levels often act as “liquidity magnets,” drawing price action to clear out open positions before any meaningful rebound.
On the flip side, if bulls successfully defend the current support zone and initiate a short-term bounce, Ethereum could aim for short liquidation clusters in the $3,730–$3,780 range.
Despite the risks, some analysts remain optimistic, pointing to bullish technical signals that suggest a potential recovery toward the $4,000 mark.
