Analysts are closely monitoring Ethereum (ETH/USD) as it prepares to retest the $4,700 mark, prompting speculation about potential market rotations into the cryptocurrency. In a striking development, a wallet associated with a notorious $300 million scam linked to Coinbase has made headlines by acquiring $18.9 million worth of Ether.
Data aggregator Lookonchain reports that on September 13, an address connected to the so-called “Coinbase hacker” purchased 3,976 ETH at an average price of $4,756 after Ethereum surged past the $4,700 barrier. This purchase was part of a larger scheme that has seen these funds cycled through 18.911 million DAI before being converted to ETH. Arkham Intelligence confirms that the wallet has been active, collecting significant amounts of DAI, with transactions ranging from $80,000 to $6 million, prior to the conversion.
The hacker’s operation is described as a widespread social engineering scheme targeting Coinbase users, effectively draining over $300 million from unsuspecting victims. Blockchain investigator ZachXBT has been scrutinizing the wallet closely, revealing that it acquired 4,863 ETH in July and 649 ETH later on, along with around $8 million worth of Solana in August. Recent revelations indicate that the total stolen from Coinbase may be even higher than initially estimated, with at least $65 million being siphoned from users between December 2024 and January 2025 alone.
The timing of these significant purchases has raised eyebrows among analysts, adding to speculation about a broader market rotation back into Ethereum. Observers noted that the wallet’s activities coincided with renewed upward momentum in ETH/USD, suggesting that high-net-worth individuals are moving their assets into this digital currency.
From a technical perspective, Ethereum is showing signs of resilience. Currently hovering around $4,660, the cryptocurrency has maintained its position above crucial short-term moving averages. The 50-day exponential moving average (EMA) is sitting at $4,462, while the 100-day EMA is at $4,421, both trending upward and signaling buyer control in the market despite minor pullbacks. Recent trading sessions have witnessed increased volume, indicating a robust demand that has helped push Ethereum from the $4,300 range to above $4,650 relatively quickly.
Traders are eyeing a potential breakout as Ethereum forms a double-bottom pattern, with a critical resistance level just below $4,700. A confirmed breakout above this neckline could target a price of $5,500, aligning with historical resistance levels and suggesting that Ethereum may be on the verge of a significant rally if current buying pressure persists. However, a failure to break this resistance could lead to a pullback to the $4,400-$4,300 zone, where key moving averages converge.
Additionally, the derivatives market appears to reflect a strong positioning with an open interest of nearly $64 billion in ETH futures. Funding rates across major exchanges have stabilized around 0.01%, suggesting a balanced sentiment among traders. Recent reports also indicate a shift in spot ETF flows, as there were net inflows into U.S. ETH funds after multiple days of outflows, hinting at renewed institutional interest.
As Ethereum navigates these complexities, investors and analysts alike remain watchful for signals that could indicate the next major movement in this volatile market.
