ETH reaches 4000 Dollar - Analysts weigh Whale purchases against adjustment risks: Technical Analysis | CoinDesk JAPAN

• According to data from CryptoQuant, whales are accumulating Ethereum at an all-time high pace.
• SharpLink Gaming purchased approximately 80,000 ETH last week, increasing its total holdings to 360,807.
• Analysts are sounding the alarm over an overheated situation as Ethereum has outperformed Bitcoin for two consecutive weeks.

The multi-week rise of Ethereum (ETH) towards $4000 faced resistance and fell by more than 3%, dropping to around $3696.

The bulls are showing confidence that the upward trend is being maintained, but recent price movements are revealing technical vulnerabilities as institutional investors accelerate their accumulation.

The pullback of Ethereum comes after a strong two-week rise, occurring amid growing discussions among analysts about whether this uptrend can continue without a broad correction. Technical indicators are starting to flash red.

The X-based cryptocurrency analysis account "Front Runners" pointed out that Ethereum has outperformed Bitcoin (BTC) for 14 consecutive days, describing this trend as "unsustainable without consolidation." It also indicated that "the RSI is in an overbought state," suggesting that market sentiment is leaning towards euphoria.

The founder and CIO of the cryptocurrency investment fund, MN Fund, Michaël van de Poppe, also raised concerns. He pointed out that Ethereum had dropped to around 3650 dollars, warning of the possibility of a "severe correction."

Andrew Crypto, the founder of Crypto Area Global, which provides investment education content focused on cryptocurrencies, also expressed a similar view, stating that while Ethereum is showing "abnormal strength", the adjustment after being rejected at a key resistance level is healthy and has a high possibility.

Despite this, some analysts still maintain a bullish outlook. Investor Crypto Rand predicted on July 8 that "the rise of ETH to 4000 dollars is programmed. It will happen sooner than expected," showing confidence in the upward momentum from an early stage.

On-chain data may also support this outlook. According to data from CryptoQuant cited by cryptocurrency YouTuber Crypto Rover on July 22, whale (large holder) purchasing activity has reached an all-time high.

This trend is also highlighted by the latest purchase data from Sharpling Gaming, one of the largest publicly traded companies by Ethereum holdings.

SharpLink announced in a press release on the 22nd that it purchased 79,949 ETH in the week ending July 20, marking the highest weekly record since the launch of its Ethereum financial strategy in June.

Sharp Link currently holds 368,807 ETH and claims to have over 96 million Dollars (approximately 14 billion Yen, based on an exchange rate of 1 Dollar = 147 Yen) available for further purchases.

The price of Ethereum has been generally stable, partly due to the increased confidence of individual and institutional investors, despite the macroeconomic uncertainties.

However, some analysts, including Andrew Crypto, who argues that "charts without adjustments are not healthy charts," have stated that a reset may be necessary for the next price increase.

According to CoinDesk Data, Ethereum is trading at $3696 at the time of writing this article, having decreased by 3.44% in the past 24 hours.