Ethereum’s latest breakout extends a trend that has steadily shifted support higher. The recent pullback at $2,560 and a brief test of lower support at $2,550. Following this, buyers re-entered the market, pushing the price to a new high in the $2,600 to $2,700 range.
The move accelerated between the 20th and the 21st of September as Ethereum [ETH] reached $2,712 before declining slightly, settling around the $2,700 level. Volume also increased during this time, indicating greater participation in the increase.
Meanwhile, RSI climbed to 68.66, approaching overbought territory. Despite that, it did not cross that threshold, which is above 70. A sustained move above $2,700 would reinforce the breakout and keep higher resistance levels within reach.
The current strength indicates the potential for a short-term cooling after the large gain. However, the structure still appears supportive so long as $2,560 continues to hold.
ETH whale demand strengthens
Ethereum’s recent breakout has attracted significant spot demand from larger holders, adding depth to the move above $2,700. Wallet 0x4cee purchased 7567 ETH worth approximately $19.9 million after transferring stablecoins to Binance.
This purchase stood out due to the fact that the same wallet sold 10500 ETH a month ago for an average price of about $2252 per ETH.
The buyer secured $3.66 million in profits on that sale. This indicates that the trader is more convinced of an upside potential than during the earlier sale.
Notably, the recently purchased ETH was transferred from Binance, reducing the supply immediately available for resale. As such, this represents a much stronger positive demand indicator than if the investor had established a leverage position.
If similar accumulation continues, whale buying could reinforce the breakout and help ETH sustain prices above $2,700.
Can ETH hold $2,700?
Ethereum’s breakout now faces a derivatives market that supports momentum without showing excessive leverage. Hyperliquid holds roughly $3 billion in ETH Open Interest, yet funding remains slightly positive.
On the other hand, short liquidation volumes reached $170 million as Ethereum forced short-sellers to buy back their positions during the upward breakout through $2,700.
When prices surged past resistance, forced market orders from liquidated short positions acted as secondary buying pressure. As a result, they accelerated the upward momentum toward $2,712.
In turn, buying pressure will increase the upward speed of prices, but it may fade as soon as all shorts are liquidated. As a result, ETH will need to get spot buyers to replace that temporary demand and defend $2,700
Whale accumulation strengthens this setup, while mixed ETF flows leave confirmation incomplete. Holding $2,700 could open $2,760. Consequently, if it loses $2600, it could lead to weakened momentum.