The Ethereum market has been experiencing high volatility in August’s first week, with the altcoin plunging below $3000 due to geopolitical tensions in the Middle East. However, recent on-chain data suggests that whales are accumulating Ethereum, signaling a potential bullish reversal.
A “smart money” investor with a high win rate has acquired a significant amount of ETH, adding to their already substantial accumulation since May. This surge in whale buying activity typically indicates a strong belief in the asset’s upside potential, despite the current downward trend.
The Ethereum price forecast shows a potential 3% intraday drop to $2,895, bringing it closer to retesting a major support level. If the altcoin rebounds from this support, it could spark a 30% rally to challenge a key resistance level and potentially drive the price to $5000.
However, if Ethereum breaks below the support level, selling momentum may intensify, leading to a further drop in price. The month of August has historically been volatile for Ethereum, with significant fluctuations in returns.
Overall, the market is closely watching to see if buyers will retake control and drive a bullish reversal in the coming week. Stay tuned for more updates on Ethereum’s price movements and market trends.
