Ethereum is turning heads again. After breaking above $3,800, significant whale purchases and rising on-chain activity create conditions for new growth.
Bull Flag and $5,673 Forecast
On the ETH chart, as noted by analyst Cas Abbe on platform X, a classic bull flag pattern is forming. After rising from below $2,500 to over $3,800 in early July, Ethereum showed consolidation in a downward channel, forming the 'flag.' As of now, ETH is trading at $3,809. A close above $3,800 confirms the strength of this pattern. Based on the height of the flagpole, the projected target for the upside is $5,673.80.
Increased Activity of Major Investors
According to Coinglass, the liquidation heatmap shows concentration of dwindling liquid assets around $3,900, creating pressure on price. Meanwhile, a whale purchase of nearly 147,590 ETH worth $544 million has been reported by Aka Bull through centralized and OTC deals. Such accumulation often precedes significant market rallies, particularly when supply on exchanges is shrinking.
General Market Trends and Ethereum Network Growth
According to Karman Asghar, Bitcoin dominance at 61.69% may signal the start of an altcoin season. If Bitcoin's dominance continues to decline, it could lead to capital rotation towards ETH and other altcoins. Furthermore, Ethereum's network is showing growth: the weekly transaction count has hit an all-time high of 11.9 million. Daily activity reached 1.92 million, marking a record for the last 18 months.
The increasing number of transactions and activity from major investors in Ethereum create prospects for further growth. If the current trend continues, Ethereum may reach a new historical high.
