Ethereum Echoes 2021 Rally As Satoshi-era Whale Swaps BTC to ETH

Key Insights:

• Ethereum price action has been doing exactly what it did in the last cycle.
• ETH price fully retraced and swept the massive candle that was created during Powell’s remarks during FOMC last Friday.
• Satoshi-era whale is back again with a deposit of 1,000 BTC ($108.27M) to Hyperliquid, sold it, and bought spot ETH.

Ethereum (ETH) price was slightly down about 4% in the last 24 hours when writing. The drop became a blessing for those bullish on altcoins despite the potential Altseason taking a hit this week.

Ethereum, the biggest altcoin by capitalization, still led on the charts by gains since May. Ethereum‘s outperformance of Bitcoin (BTC) during this period was clear.

Actions by Bitcoin OGs and the surge in ETH trading volume were some of the signs that hinted at the continuation of this trend. Ethereum’s onchain trading volume hit a new peak, surpassing that of 2021. More than $300 billion was transacted in August alone, two days before the close of the month.

Apart from the chain activity, price action fractals were starting to align with the 2021 altcoin season.

How Ethereum’s 2021 Fractal Could Repeat In 2025

Ethereum price action was shaping for a repeat of the 2021 fractal, with analysts and whales eyeing a similar run in 2025. Per Ted Pillows, Ethereum was repeating the exact pattern, especially after the recent corrections that followed ETH price surpassing $4,900.

In the 2020/21 cycle, Ethereum saw multiple rejections around its highs, followed by 15% to 20% pullbacks. These pullbacks resulted to the price of ETH making a new peak. A similar scenario could unfold in Q4, with these dips expected in September.

From the price fractals on the chart,the Ethereum price could go beyond the $6,000 mark.

The recent attempts to break above $4,800 were initiated by the surge that followed Fed’s comments on a potential rate cut.

Ethereum Price Completes Retracement

Narrowing down to smaller timeframes to understand the crypto further supported the aforementioned outlook. The hourly chart showed the altcoin had completed a retracement for the post-Fed news rally seen last Friday, dated August 22nd.

Over the week, the Ethereum price had been making lower highs and lows, sweeping the massive candle created by the news. Fed Chair Jerome Powell said the odds of cutting rates in September were high. This would be bullish for risk-on assets like BTC and ETH as participants would borrow to invest in them.

A liquidity sweep right below where the move started could kickstart a similar rally, even though it would not be as robust. Still, it was uncertain whether a run back to $4,900 would sustain up to $6,000 before Q4 2025.

Satoshi-era Bitcoin Whale Rotates Money Into ETH

Interestingly, Ethereum was also on Bitcoin OG’s radar, on top of bullish sentiment. A whale with more than $5 billion in BTC was back again to swap more Bitcoin into Ethereum. Due to the whale’s influence, this hinted that a potential rally could unfold.

After swapping about $2.94 billion BTC into ETH last week, they moved another $1.10B BTC. However, at the time of writing, only 1,000 BTC worth $108 million had been sold on Hyperliquid and used to buy spot Ethereum. The whale was continually purchasing ETH, igniting attention on the altcoin.

Ethereum ICOs were also returning to activity. Despite the mass purchases, there was risk of manipulation. The risk came from the dumping of millions of Ethereum by Binance exchange. The exchange was moving ETH to the market maker, Wintermute.

Altogether, bullish sentiments were more prevalent than the bearish ones. This prompted former Binance CEO, CZ, to make a bold statement. In a tweet after the drop, CZ said, “Things to avoid in crypto. Selling the dip.”

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.