Ethereum reached an 8-month high of $2,660 on Friday after breaking through the $2,500 resistance level it had been testing for several weeks. The surge occurred within roughly an hour, climbing from below $2,440 before pulling back.
Whale Activity Signals Momentum
Ethereum transactions exceeding $1 million increased by nearly 14% during the rally, according to analyst data, indicating heightened participation from large market participants. Within two hours, the asset posted one of its most significant price movements of the year.
Prior to the rally, more than 116,000 ETH worth approximately $300 million at the time was withdrawn from exchanges over a 48-hour period, reducing immediate trading supply. An analyst had previously identified $2,475 as an important resistance level that converted to support, with approximately 2.86 million ETH having changed hands at that price.
Current Challenges Ahead
Despite the rally, Ethereum retreated to just above $2,500 by market close. On-chain data indicates that more than 10 million ETH were accumulated between $2,720 and $2,820, creating a significant resistance zone where previous buyers could seek to exit positions.
The cryptocurrency market faces broader headwinds next week, with the Federal Reserve expected to announce interest rate decisions on September 16. The US Senate is also scheduled to vote on the CLARITY Act on September 15, potentially introducing additional volatility to risk assets including cryptocurrencies.
