Ethereum surged past the $2,500 resistance on Friday, reaching an eight-month high of $2,660 before pulling back. The move, which saw the asset climb from under $2,440 to $2,667 within two hours, was driven by a 14% increase in large transactions over $1 million. Analysis from Ali Martinez indicated that whale activity was a key factor, following the withdrawal of more than 116,000 ETH—worth approximately $300 million—from exchanges over a 48-hour period. However, the asset has since retraced to around $2,500, facing a major new resistance zone between $2,720 and $2,820 where over 10 million ETH were previously acquired.
Ethereum reached its highest price since late January on Friday, surging to $2,660 before encountering selling pressure. The unexpected 8% move occurred within roughly an hour.
According to data shared by analyst Ali Martinez, large holders played a significant role in breaking the key $2,500 barrier. Transactions worth more than $1 million increased by nearly 14% during the rally, indicating heightened activity from whales.
Within less than two hours, the asset posted a major wick from under $2,440 to a high of $2,667. This followed several encouraging on-chain signals noted earlier in the week.
Data shows that over 116,000 ETH, valued at approximately $300 million, was withdrawn from exchanges within 48 hours prior to the move. Such withdrawals typically reduce the amount of an asset immediately available for trading.
Martinez identified the $2,475 level as an important resistance zone that has now turned into support, citing that 2.86 million ETH had previously changed hands there. His thesis had envisioned a surge toward approximately $2,700.
Despite the rally, bears quickly stepped in to prevent a sustained move above $2,700. The asset is now trading back at just over $2,500.
On-chain data reveals a substantial resistance zone between $2,720 and $2,820, where more than 10 million ETH were previously acquired. Investors who bought within that range could sell if the price returns near their cost basis.
Risk-on assets also face a major test next week as the Federal Reserve is expected to hike interest rates on September 16. The U.S. Senate is scheduled to vote on the CLARITY Act a day earlier, which is likely to bring additional volatility.
