ethereum

The crypto market rebounds with impressive force today, staging a powerful recovery from last week’s tariff-induced selloff. Major cryptocurrencies are posting significant gains, led by Ethereum’s decisive climb back above the critical $4,000 psychological level. This bullish reversal suggests traders are quickly shaking off geopolitical concerns and refocusing on fundamental strengths.

Crypto Market Rebounds with Ethereum Leading

Ethereum spearheads the current rally with a solid 4.57% daily gain, firmly reestablishing itself above $4,000. Meanwhile, Binance Coin demonstrates even stronger momentum, surging an impressive 11.72% to reach $1,266. Additionally, DeFi tokens like PancakeSwap’s CAKE and Aster’s ASTER are exploding with 18% and 15% gains respectively, indicating robust risk-on appetite returning to the market.

The recovery extends across major assets, with Bitcoin climbing 1.70% to trade above $113,000 and Solana gaining 7% to approach $190. This broad-based upward movement confirms the bounce has substantial market depth rather than representing isolated strength in just a few tokens.

Whale Accumulation Signals Confidence

Significantly, on-chain data reveals major players are backing this rebound with substantial capital. A prominent whale deposited 9.5 million USDC on Hyperliquid today, opening a massive $70.76 million long position on ETH with 25x leverage. This bold bet currently shows $5.75 million in unrealized profits, demonstrating both conviction and sophisticated market timing.

Liquidation data further illuminates key price levels to monitor. Currently, short liquidations have reached $221 million as Ethereum surpasses $4,000. Conversely, if ETH retreats below $3,900, approximately $185 million in long positions would face liquidation, creating a clear battle zone between bulls and bears.

My Thoughts

This recovery demonstrates remarkable market resilience. Despite significant geopolitical headwinds, buyers quickly stepped in at lower levels. The whale’s enormous leveraged long position particularly signals strong conviction among sophisticated traders. However, the high leverage in the system means volatility will likely remain elevated as positions are established and liquidated around these key levels.

Ethereum price dropped 10 % and trades below $4 000. Small traders sell, yet large holders bought $1.7 billion of ETH in three days. The daily RSI now sits lower than at any time since April, a level that preceded a 134 % climb during the following two months.

Key Levels in Play for Ethereum Price

The $3 800 – $3 900 area has held so far. Lark Davis notes that loss of this zone would cancel the upward forecast – if the level holds and mood improves, price may reach $7 000 – $8 000 within a few months.

• Support: $3,800–$3,900 (holding so far).
• Risk: Losing this zone cancels the bullish setup.
• Upside Target: If support holds, Lark Davis sees ETH climbing to $7K–$8K in coming months.

Bullish Signals Emerging

Lookonchain shows sixteen wallets that withdrew 431 018 ETH from Kraken besides OKX between 5 and 7 September. The transfers cost $1.73 billion and left the coins in cold storage, a pattern that in past crashes marked local bottoms.

Seasonal data add another tail wind. September often closes in the red, yet the fourth quarter has finished higher in most years. Michael van de Poppe adds that the first quarter has delivered the strongest average return since 2016.

• RSI oversold: At its lowest since April, right before ETH rallied 134%.
• Whale buying: 16 wallets pulled 431,018 ETH ($1.73B) off Kraken & OKX into cold storage.
• Seasonality: September often weak, but Q4 is historically strong, with Q1 the best since 2016.

The Verdict

Oversold momentum, record whale inflows and the calendar together set up a rare alignment. A daily close below $3 800 would void the setup – until then, the path of least resistance points upward.