The price of Ethereum is over $4,320, but the transaction remained flat for almost a week. Since September 5th, the token has been barely moving and stuck between close ranges. For traders, such side-way behavior usually builds tension before larger movements.
On the charts, Ethereum may break out of a bullish setup, but it needs to be confirmed. Meanwhile, whale purchase and supply signals indicate that accumulation may already be ongoing.
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Whales grab $17 billion when exchange supply becomes tight
Over the past five days, whales have scooped up nearly 4 million ETH (95.73 million to 99.66 million). At a price of around $4,300 today, it’s equivalent to $17 billion in ETH. This is not a small movement. In many cases, larger wallets lead the trend, and when sizes are purchased, they can set the stage for stronger gatherings.
Most importantly, when ETH prices were trading in a range (from September 5th to September 10th), the Ethereum whales scoop up their supply. This may suggest early positioning. Maybe they also noticed a bullish pattern we will discuss later in the work.
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At the same time, the exchange supply rate fell to 0.145, reaching the lowest level in a year. Just a few weeks ago, in late August it was 0.156.
The exchange supply ratio measures how much ETH is sitting in exchange compared to the total supply. This is important because if the exchange reserve drops while the overall supply is stable or growing, it means there is less ETH to sell, which means there is less ETH to sell.
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Putting these two signals together makes the story clearer.
Whales are adding billions to their ETH, but fewer coins are parked in exchange. The supply available to traders is tightened just as demand from large players increases. The perfect set up for bullish moves and breakouts.
Ethereum price breakout, but you need to confirm
On the daily charts, Ethereum prices are close to the bullish “fallen wedge” pattern cap that has been formed since the end of August. This setup, which is often linked to breakouts, comes after a period of high and low prices narrowed down the price to a narrow range. ETH is currently testing the top of its range at nearly $4,320.
For traders, breakouts have not been confirmed yet. To seal the movement, you need to be close to the daily above the top line of the pattern. In that case, Ethereum prices could then be targeted at $4,490, $4,670, or even $4,950 (the highest ever) based on the size of the pattern.
On the back, if ETH slips below $4,210, it weakens the breakout paper and allows for a drop to $4,060.
For now, whales have purchased billions of dollars and are offering fuel when they cut back on replacement supplies. The chart just provides confirmation.
