Dormant Ethereum whale buys $28M ETH, ignites ‘V-shaped’ recovery hopes

Key takeaways:

• Dormant whale buys $28M in ETH as price drops 13%, signaling accumulation.

• Whales, BitMine, and ETFs add billions in ETH, reinforcing bullish demand.

• “V-shaped” recovery pattern emerges, with analysts eyeing $7.5K–$20K targets.

An Ethereum whale wallet has resurfaced after four years of silence, scooping up $28 million worth of Ether in a move that has stirred bullish chatter across the market.

Rich Ethereum addresses are buying the dip

On Tuesday, the entity withdrew 6,334 ETH (worth around $28.08 million) from Kraken in the past hour, according to onchain data cited by analyst CryptoGoos. The same address last interacted with the exchange in 2021.

Ether has dropped more than 13% since Sunday, slipping from above $5,000 to around $4,315, a decline the whale appears to have treated as a buying opportunity.

The transfer is noteworthy because whale outflows from exchanges are typically seen as a bullish signal, suggesting accumulation and long-term holding, rather than imminent sell pressure.

Other whale wallets have made even larger ETH purchases.

On Tuesday, crypto exchange Bitstamp sent 20,000 ETH to an unknown wallet, according to Whale Alert data. That indicates an exchange-to-self-custody flow typically associated with accumulation.

Moreover, according to data resource Arkham Intelligence, a single whale bought and staked around $2.55 billion in ETH via Hyperliquid on Monday.

These moves coincide with BitMine’s continued push into Ethereum. Over the past week, the firm added $252 million in Ether, which has pushed its total holdings to 797,704 ETH (valued at roughly $3.7 billion).

BitMine has an additional $200 million in reserves for further Ethereum purchases.

Spot Ethereum ETFs have attracted more than $1 billion in inflows since Aug. 21, according to Farside Investors data, thus almost erasing $925.70 million in outflows witnessed four days prior.

The steady capital adds to whale and corporate buying, reinforcing the view that ETH’s dip is being treated as an entry point rather than a breakdown.

Ethereum in “V-shaped” recovery: Analyst

Ether’s ongoing rebound from summer lows near $3,350 to above $4,000 resistance is forming a “V-shaped” recovery, echoing past cycle bottoms that preceded major bull runs, according to analyst GalaxyBTC.

In late 2020, ETH carved out a similar “V,” rising to more than $4,000 a year after plunging to roughly $100 during the March pandemic crash. A smaller version of this scenario unfolded in late 2022 when ETH recovered above $2,000 in early 2023 from under $1,200.

Ethereum’s technical setups suggest ETH’s price could climb toward $10,000-20,000 in the coming months. Geoffrey Kendrick, head of digital assets at Standard Chartered, anticipates it to hit $7,500 by the year’s end.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.