TLDR
Ethereum price jumped 5% to $3,639 after a brief pullback last week
Whale activity shows $142 million in ETH acquisitions within 24 hours
Long/short account ratio at 1.91, indicating nearly twice as many long positions as shorts
Bullish triangle pattern remains intact after testing key support at $3,356
Technical indicators suggest a daily close above $3,785 could trigger a move beyond $4,000
Ethereum has staged a strong recovery, jumping 5% to trade at $3,639 after testing critical support levels. The second-largest cryptocurrency by market cap is showing signs of renewed momentum after last week’s downturn.
The price correction saw ETH drop more than 8.6% over seven days, reaching as low as $3,456 in the past 24 hours. Despite this pullback, Ethereum has gained approximately 44% over the last 30 days.
On-chain data reveals interesting movements beneath the surface. Whale holdings have increased by 1.82% over the past month, while retail wallets have grown their positions by 1.87%. This parallel accumulation between large and small holders often precedes major price movements.
Two major whale transactions were recorded within the last day. A new wallet received 24,294 ETH (worth $86.48 million) from FalconX, while another whale acquired 15,627 ETH (valued at $55.6 million) from Galaxy Digital OTC wallet.
These purchases total approximately $142 million, highlighting strong confidence from institutional investors.
Smart trader 0xCB92 is doubling down on his $ETH short!
His position has now reached 50,000 $ETH($171.7M) with over $10M in unrealized profit.
Liquidation price: $3,634.https://t.co/PqrRRV3sXQ pic.twitter.com/vJDZBpUiFL
— Lookonchain (@lookonchain) August 3, 2025
Market Signals Point Upward
The trading sentiment appears predominantly bullish. According to Binance data, the long/short account ratio currently stands at 1.91, meaning there are nearly twice as many accounts holding long positions as shorts.
This metric differs from position volume ratio as it counts the number of user accounts rather than trade size, potentially indicating broader market confidence.
IntoTheBlock’s Bull vs Bear address chart shows bulls outnumbering bears by 7 over the last week. While this margin is slim, it suggests accumulation is outpacing distribution.
Meanwhile, ETH Futures Open Interest rose around 0.7% to $48.24 billion, showing sustained interest from traders despite recent price volatility.
Institutional interest remains robust. Although US Spot Ethereum ETFs recorded an outflow of $152.3 million on August 1 during the broader market correction, a CoinShares report shows Ethereum added $133.9 million in fund flows last week.
This brings Ethereum’s year-to-date inflow to an impressive $7.92 billion, contrasting with Bitcoin’s outflow of $404 million during the same period.
Technical Picture Shows Potential Breakout
From a technical perspective, Ethereum has formed a bullish ascending triangle pattern on the daily chart. After moving from $2,120 to $3,939, ETH entered a consolidation phase.
The price briefly dropped below the $3,785 support level, leading to increased selling pressure as traders anticipated a breakdown of the $3,356 support. However, this level held during yesterday’s test, and the price rebounded.
Market experts have identified key levels to watch. If Ethereum maintains support at $3,537, it could potentially reach $4,100 in the near future. A daily close above $3,785 might trigger a test of $3,939 followed by $4,051, which would represent a clean breakout from the current pattern.
Should macroeconomic factors cause further correction, analysts point to $2,700-$2,924 as the next major support zone.
The current price structure suggests bears may have been trapped by the recent bounce. Short positions opened near the support test would likely have been liquidated during today’s 5% rally.
Ethereum currently trades at $3,639, still 27.1% below its all-time high. The market awaits confirmation of whether this recovery marks the beginning of a sustained move toward the psychologically important $4,000 level.
