Ronny Mugendi
02-09-2025
Ethereum showed strong accumulation trends in August 2025, led by whale wallets increasing their holdings amid volatile price action. ETH traded between $3,350 and $4,955 and ended the month close to $4,409, showing a strong resilience after reaching highs in mid-month.
https://x.com/ali_charts/status/1962749578488259034
According to data from glassnode the most significant accumulation occurred in the last 24 hours, with 260,000 ETH added, supporting bullish sentiment despite recent corrections in price.
The on-chain data also shows that there has been a large capital migration from Bitcoin to top altcoin from large players.
According to the analyst Ted Pillows, a significant crypto whale recently exchanged BTC for ETH and bought $46.5 million worth of the latter, emphasising the increasing institutional interest.
The accumulation was performed through Hyperunit hot wallets and consisted of a number of large transactions spread out over a two day period.
This bullish rotation shows increasing confidence in the potential for the top altcoin to rebound after its pullback from the $4,955 high.
Ethereum's exchange balances continued to decline long-term and by late August hit new lows, per Glassnode. In May 2020, about 30-32% of the altcoin was held on centralized exchanges; by mid-2025, this had decreased to 12-14%.
The final week of August saw a sudden dip in exchange supply, which indicates withdrawals to cold storage or staking were increasing at a faster pace.
Percent Balance on Exchanges | Source : glassnode
Historically, accumulation phases are accompanied by falling exchange balances and tend to favor long upward movements in the price. With token just barely reaching near $5000, the declining supply creates bullish technical patterns.
Meanwhile, CryptoRank reported that total crypto market cap is currently $4.03 trillion and ETH has dropped 1.16% in 24 hours. Fear & Greed Index is at 49 (Neutral) indicating a balanced sentiment as the market processes recent volatility.
Technical analyst Ted points to a strong support at $4,230 that has been tested multiple times over the past several weeks. He points out that ETH may be able to regain some strength if it breaks through $4,500, with the next resistance range being $4,832.
Daily chart analysis : Source : X
A breakdown of $4,230 could take ETH down to the $4,000 level, and then to the $3,800 level if selling continues. However, as long as the support levels are held, the overall structure is constructive.
Moreover, CryptoBusy's analysis shows M2 global liquidity growth has been closely followed by Ethereum since mid-2025, and has been increasing rapidly since then. ETH shifted from accumulation below $2,750 to a bull phase as it currently hovers between $4,400-$4,500.
Ethereum vs M2 Global Liquidity | Source : X
According to both, a breakout above $4,520 might lead to a move towards $4,800. Historical tendencies also point to a strong Q4 seasonality, which could play to further upside if liquidity holds.
Net Flows by Chain | Source : DefiLlama
At the same time, adoption in the real world is rapidly increasing, with Ethereum enabling the tokenisation of bonds and institutional-grade products. A major advance was made when the Chinese state-owned enterprise Futian Investment Holding issued the world's first public RWA bond on Ethereum.
The bond has a nominal value of $700 million, a coupon of 2.62% and a maturity of two years, and is traded on two markets, in Shenzhen and Macau. This is the first time a state-issued bond was issued to public markets directly using a blockchain, and it represents a significant paradigm shift in finance.
Tokenized securities and their use of the Ethereum blockchain put it at the cutting edge of institutional blockchain adoption. Coupled with bullish technicals, declining exchange balances, and high net inflows, ETH continues to hold a pivotal role in the evolving financial landscape of crypto.
Ronny Mugendi is an experienced crypto journalist with four years of professional expertise, having made substantial contributions to multiple media platforms covering cryptocurrency trends and innovations. With more than 4,000 published articles to his name, he is dedicated to informing, educating, and bringing more people into the world of Blockchain and DeFi. Beyond his journalism work, Ronny finds excitement in bike riding, enjoying the adventure of exploring fresh trails and landscapes.
Ronny Mugendi is an experienced crypto journalist with four years of professional expertise, having made substantial contributions to multiple media platforms covering cryptocurrency trends and innovations. With more than 4,000 published articles to his name, he is dedicated to informing, educating, and bringing more people into the world of Blockchain and DeFi. Beyond his journalism work, Ronny finds excitement in bike riding, enjoying the adventure of exploring fresh trails and landscapes.
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