ETH Price Analysis: Hacker's $2.31M Ethereum Purchase Signals Whale Accumulation Amid Market Volatility

In a striking development that has captured the attention of cryptocurrency traders, a hacker notorious for stealing over $300 million from Coinbase users has made another significant move in the Ethereum market. According to Lookonchain, this entity acquired an additional 649.62 ETH, valued at approximately $2.31 million, at a price of $3,561 per ETH just nine hours ago on July 20, 2025. This transaction, tracked via on-chain data from intel.arkm.com, highlights ongoing whale activity in ETH, potentially influencing short-term price dynamics and trader sentiment. For those monitoring Ethereum trading opportunities, this purchase comes at a time when ETH is navigating key support levels around $3,500, with resistance near $3,600. Traders should watch for increased buying pressure if similar accumulations continue, as they could signal a bullish reversal in a market still recovering from recent corrections.

Diving deeper into the trading implications, this hacker's activity underscores the role of large-scale buyers in shaping ETH's market trajectory. The purchase was executed at $3,561, a level that aligns with Ethereum's 24-hour trading range observed in recent sessions, where volume has surged amid broader crypto market fluctuations. On-chain metrics reveal that this address has been steadily accumulating ETH, which could correlate with rising institutional interest in Ethereum-based assets. For active traders, this presents potential entry points: if ETH holds above the $3,500 support, it might target the next resistance at $3,700, offering scalping opportunities on hourly charts. Conversely, a breakdown below $3,500 could trigger selling pressure, amplified by the hacker's high-profile actions that often spark fear, uncertainty, and doubt (FUD) in retail circles. Volume analysis shows that ETH's daily trading volume has hovered around $15-20 billion recently, with this transaction contributing to a minor uptick in buy-side activity. Traders using technical indicators like the Relative Strength Index (RSI), currently at 55, might interpret this as a neutral-to-bullish signal, encouraging long positions with stop-losses set below recent lows.

Market Sentiment and Cross-Asset Correlations

Beyond the immediate ETH price action, this event ties into broader market sentiment, where whale movements often precede volatility spikes. Ethereum's correlation with Bitcoin remains strong at over 0.85, meaning BTC's performance could amplify the impact of this accumulation. If Bitcoin pushes above $60,000, it might provide tailwinds for ETH, potentially driving it toward $4,000 in the coming weeks. Institutional flows, as evidenced by ETF inflows exceeding $1 billion last month, further support a constructive outlook, though regulatory scrutiny on hacks like this could introduce downside risks. For stock market correlations, traders should note how tech-heavy indices like the Nasdaq, which dipped 0.5% yesterday, influence AI-related tokens and Ethereum's DeFi ecosystem. This hacker's buy could be seen as a vote of confidence in ETH's long-term utility, prompting diversified portfolios to allocate more to crypto amid stock market uncertainties.

From a risk management perspective, this development offers valuable insights for day traders and swing traders alike. With the transaction timestamped nine hours ago, real-time monitoring of the address via blockchain explorers is crucial to anticipate further moves. If the hacker continues accumulating, it might push ETH's market cap, currently around $420 billion, higher, creating momentum trades. However, caution is advised given the illicit nature of the funds, which could lead to blacklisting or regulatory interventions affecting liquidity. In summary, this $2.31 million ETH purchase at $3,561 not only highlights persistent whale interest but also opens doors for strategic trading setups, emphasizing the need for vigilance in Ethereum's volatile landscape. By focusing on key levels like $3,500 support and $3,600 resistance, traders can capitalize on potential breakouts while mitigating risks from external factors.

Overall, as Ethereum continues to evolve with upgrades like potential layer-2 scaling solutions, events like this reinforce its appeal for long-term holders. Traders eyeing altcoin rotations might find ETH pairs against USDT or BTC particularly attractive, with recent 24-hour changes showing ETH up 1.2% against the dollar. Keeping an eye on trading volumes, which spiked 5% post-transaction, could reveal emerging patterns for profitable entries.