Ethereum's Annual Dumping Wave: Can the Bull Market Absorb Supply to Reach the $5,000 Target? This article summary is generated by AI. Ethereum is at a critical moment, following a wave of dumping of up to 2.59 million ETH. However, strong accumulation by large holders indicates a bullish sentiment, targeting $5,000. The key resistance level will be crucial for this potential rally. Ethereum ( ETH ) is at a critical turning point. A massive dumping wave, resulting in 2.59 million ETH flowing into exchanges, is testing the resilience of its recent rally. However, unlike previous dips, this heavy dumping is facing strong counterforce: a surge from large holders. In this situation, can the bull absorb this supply to maintain momentum and push ETH toward the $5,000 target? Dumping Tide: The Second Largest Inflow of Funds This Year 📉 On August 14, 2025, Ethereum experienced the second-largest single-day inflow into exchanges this year. In this move, 2.59 million ETH was transferred to exchanges, typically a sign of potential selling pressure. This inflow was partly caused by the dumping from the Ethereum Foundation Wallet, increasing supply in the market. In a normal dip, such a level of dumping would indicate a potential price collapse. However, this significant inflow occurred during a strong rally, with aggressive buying power absorbing the supply. This indicates that the market is not dominated by bears but rather by bulls preparing to sell on dips. Bull's Counterattack: Whales Accumulate Massive Amounts 🐳 Despite the strong selling pressure, the bull market is still in control. The article emphasizes that large holders—wallets holding at least 0.1% of the total Ethereum supply—have been actively accumulating over the past seven days, with their holdings nearly doubling. This large-scale accumulation suggests that these "whales" are confident in Ethereum's long-term value and are using the heavy dumping as a strategic buying opportunity. The Road to $5,000: Key Levels to Watch 🎯 For Ethereum to achieve its ambitious $5,000 target, it must first break through a key resistance level. The article notes that the daily closing price needs to be above $4,785 to pave the way for a rise toward the $5,000 target, or more specifically, $5,175. The bullish sentiment is further supported by the Bull-Bear Power Indicator, which leans toward buyers, indicating that despite the large inflows to exchanges, short positions have not yet dominated. Conclusion Ethereum is at a critical moment, with strong selling pressure facing a powerful counterattack from whale accumulation. The bull's resilience in absorbing this supply indicates that the market is not on the brink of collapse, but rather solidifying for a new rally. The coming days will be crucial in testing whether ETH can break through key resistance levels and surge toward the $5,000 target. Disclaimer This article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments carry high risk and volatility. Always do your own research ( DYOR ) and consult a professional financial advisor before making any investment decisions.