Ethereum Whales Accumulate as ETFs Record Inflows, StarkNet Suffers Outage

Key Insights:

• Whales bought 260,000 ETH worth $1.1B in 24 hours.
• U.S. spot Ethereum ETFs absorbed 286,000 ETH inflows last week.
• Analysts warn September correction could form a major bear trap.

Ethereum price steadied near $4,400 on Sept. 2 as whale accumulation and robust exchange-traded fund (ETF) inflows contrasted with a temporary outage on StarkNet’s layer-2 network. Traders assessed whether institutional demand could offset infrastructure risks.

Whale Activity Signals Renewed Confidence

Large holders bought 260,000 ETH within 24 hours, according to analyst Ali, who shared the update on X. The aggressive buying spree suggested whales considered the $4,300–$4,400 range attractive for accumulation.

Ethereum traded at $4,387 at press time, up 0.46% on Bitstamp’s four-hour chart. The move kept the token within a descending wedge structure, with technical projections pointing toward a possible 9.8% rebound to $4,820 if a breakout occurred.

Relative strength index (RSI) data from TradingView showed a neutral reading near 47, leaving room for upward momentum if buying pressure persisted. Traders eyed the $4,800 zone as a key resistance area to confirm a breakout.

ETF Inflows Underscore Institutional Demand

On-chain analytics platform Glassnode reported that U.S. spot Ethereum ETFs absorbed 286,000 ETH in the past week, marking one of the strongest inflow prints since launch.

Despite Ethereum closing the week near $4,400, institutional appetite remained firm, adding to the narrative of long-term accumulation. Market observers highlighted the correlation between ETF flows and price stability, especially as Bitcoin ETFs continued to attract attention from traditional finance.

The ETF inflows aligned with whale buying patterns, indicating retail and institutional demand overlapped in supporting Ethereum’s near-term outlook.

StarkNet Outage Highlights Network Risks

While capital inflows and whale activity supported bullish sentiment, Ethereum’s ecosystem faced operational challenges. Wu Blockchain reported on Sept. 2 that StarkNet, a prominent Ethereum layer-2 scaling solution, went offline for over 20 minutes.

The outage raised concerns about network resilience at a time when user reliance on layer-2s was rising. StarkNet, built to improve scalability and transaction throughput, plays a key role in Ethereum’s broader infrastructure narrative.

Although service was restored, the incident underscored persistent reliability risks in scaling solutions, tempering enthusiasm among some investors.

Analysts Warn of September Bear Trap

Crypto trader Johnny Woo predicted that September could mislead traders with a bearish head-and-shoulders formation. He argued the pattern might “spook everyone” before invalidating in October.

“It might look bearish at first, but if it plays out, it could be the biggest bear trap I’ve ever seen,” Woo said on Monday.

He added that Ether could fall to $3,350 this month before recovering sharply in “Uptober” and reaching new highs in November. Woo compared the setup to 2021, when ETH dropped 30% in September before hitting an all-time high two months later.

Range Trading Keeps Market On Edge

Daan Crypto Trades highlighted ETH’s consolidation between $4,300 and $4,500. He noted that a retest of the four-hour 200 moving average near $4,160 would be “an interesting spot” for potential bids.

His view reinforced the broader picture of indecision. Traders faced whipsaw moves within a defined range while larger players positioned for a breakout.

September Decision Point

Ethereum entered September at a crossroads. Whales and ETFs accumulated, technical patterns hinted at volatility, and network risks surfaced through outages.

Whether ETH holds its $4,300 support or tests lower levels near $4,160 could define the coming weeks. Traders braced for a month of uncertainty and a potential bear trap that could reset the market heading into October.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.