Ethereum price surged on Tuesday after forming a significant hammer candlestick pattern and attracting investors, including the ‘7 Siblings.’
Ether (ETH) traded at $2,445, marking a 15% rise from its week’s lowest point, mirroring Bitcoin (BTC), Cardano (ADA), and Bittensor (TAO) actions.
Ethereum whales are buying
Large investors seized the opportunity on Black Monday, expecting a rebound. Among them, ‘7 Siblings’ purchased 56,093 ETH tokens worth over $129 million.
Exchange-Traded Funds investors also bought $49 million in assets, indicating increased optimism, according to Bloomberg.
However, caution prevails as some major holders sell off tokens. Jump Trading sold Ether worth over $609 million recently. Longling Capital moved 20,000 coins after nearly two years of inactivity.
Ethereum’s recovery faces risks. Komal Sri-Kumar, founder of Sri Kumar Global Strategies, suggested the Federal Reserve should delay interest rate cuts to control inflation.
Nonetheless, the CME Fedwatch tool shows a 76.5% probability of a rate cut in September, followed by one in November and December.
Positively for Ethereum, its staking yield rose by 6.3% in the past 24 hours to 9.46%, with the staking market cap dropping by 26% to $81.95 billion.
Ethereum price faces technical risks
Technically, Ether faces risks. The coin formed a triple-top pattern with a neckline at $2,810, now below the neckline, signaling bear dominance.
Ether may also form a death cross with the 50-day and 200-day Simple Moving Averages nearing a bearish crossover. Like Bitcoin, any rebound after a sell-off might be temporary.
