Ethereum (ETH) is garnering renewed attention as large-scale investors, commonly known as "whales," have recently accumulated a significant amount of the cryptocurrency. Data indicates that Ethereum whales purchased 260,000 ETH in a single day, signaling strong confidence in the asset's potential. This substantial accumulation has fueled optimism for a possible price recovery, with some analysts eyeing a return to the $5,000 mark and beyond.

Whale Accumulation and Market Dynamics

According to crypto analyst @ali_charts, wallets holding between 10,000 and 100,000 ETH increased their holdings by approximately 260,000 tokens. This surge brought their combined ETH possessions close to 29.6 million. This activity occurred while Ethereum traded within a relatively tight range, around $4,400. Such buying behavior from whales often suggests an expectation of higher prices and a desire to establish positions before potential upward price movements. The reduction in available supply due to this accumulation, coupled with the confidence it signals, reinforces Ethereum's position as a serious long-term investment. Historically, similar whale behavior has preceded major price rallies.

Exchange Flows and Funding Rates

Data also reveals significant exchange outflows of Ethereum. In mid-August, withdrawals peaked at 2.8 million ETH, coinciding with Ethereum's rise from $3,600 to nearly $4,800. This suggests that buyers were actively moving their holdings off exchanges. While daily outflows have decreased slightly in early September, they remain substantial. Furthermore, funding rates across exchanges have remained positive, indicating a bullish bias with traders willing to pay to hold long positions.

Potential Price Targets and Analyst Perspectives

Currently, Ethereum is consolidating near $4,580. Momentum indicators suggest continued recovery potential. Should the demand zone maintain support during retracements, a positive forecast remains, with the next key resistance level at $4,950-$5,000. A break above the $4,600-$4,755 range could propel ETH toward the $5,000 mark.

Analysts like Merlijn The Trader see the expansion phase confirmed, with multi-year resistance flipped to support and a $7,000+ target projected. Fundstrat Chief Investment Officer Tom Lee has predicted that Ether could reach $5,500 in the near term and potentially $12,000 by the end of 2025, driven by new stablecoin legislation boosting Wall Street's confidence. Other analysts believe ETH could reach between $5,000 and $10,000 before the end of 2025.

Ethereum's Fundamentals and Future Prospects

Ethereum's positive outlook is supported by several factors, including strong technical upgrades, growing institutional demand via ETFs, and a thriving decentralized finance (DeFi) ecosystem. As of July 2025, the Total Value Locked (TVL) across Ethereum DeFi protocols sits at $72.64 billion. Layer-2 solutions like Optimism, Arbitrum, and Base are also capturing a growing share of transactions, contributing to Ethereum's scalability.

While some analysts predict a more moderate increase to around $5,000, others foresee significant growth, with targets of $7,000 or even $10,000 before the year's end. Long-term projections remain optimistic, with some suggesting that ETH could reach $15,000 by 2028. The potential approval of spot ETH ETFs and continued institutional adoption are expected to drive further growth.