Ethereum price saw a notable rebound on Tuesday, Aug. 6, following a significant hammer candlestick pattern. This uptick came amid some investors, including a notable entity known as ‘7 Siblings,’ capitalizing on the dip.

Ether was trading at $2,445, marking a substantial 15% increase from its lowest point this week. This movement was in line with the price actions of Bitcoin, Cardano, and Bittensor (TAO).

Ethereum Whales Making Moves

There are clear indications that some large investors bought the dip on what was dubbed ‘Black Monday,’ anticipating a bounce back in the token’s value. Among these buyers was ‘7 Siblings,’ an entity with over $1.57 billion in assets. This entity purchased 56,093 ETH tokens, valued at over $129 million.

While many were panic selling due to the market crash, ‘7 Siblings’ quietly acquired 56,093 $ETH ($129M) at the bottom!

‘7 Siblings’ initiated their buying spree when the price dropped to $2,600 and continued until it hit $2,191, over a span of 12 hours.

Moreover, Exchange Traded Funds (ETF) investors also showed optimism, purchasing assets worth $49 million, signaling increased investor confidence.

However, caution remains in the crypto industry. Major holders like Jump Trading have sold Ether tokens worth over $609 million in recent weeks. Similarly, Longling Capital moved 20,000 coins after being dormant for nearly two years.

Risks to Ethereum’s Recovery

Despite the positive momentum, Ethereum’s recovery faces several risks. Some analysts are skeptical about the Federal Reserve cutting interest rates in September. Komal Sri-Kumar, founder of Sri Kumar Global Strategies, mentioned in a CNBC interview that the Fed should wait for inflation to decrease before cutting rates. Nonetheless, the CME Fedwatch tool indicates a 76.5% probability of a 50bps rate cut in September, followed by additional cuts in November and December.

On a positive note, Ethereum’s staking yield has increased by 6.3% over the past 24 hours, reaching 9.46%. This rebound occurred as the staking market cap dropped by 26% to $81.95 billion.

Technical Risks for Ethereum

From a technical perspective, Ethereum price faces potential challenges. The daily chart shows a triple-top pattern with a neckline at $2,810. The price has now fallen below this neckline, indicating bearish dominance.

Additionally, Ether is on the verge of forming a death cross, as the 50-day and 200-day Simple Moving Averages are nearing a bearish crossover. This pattern suggests that any rebound following a sell-off might be a dead cat bounce.

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