Ethereum Whale Adds $1.3 Billion on ERC-8004 Hype – But One Indicator Still Holds Back the Rise

Ethereum is receiving renewed attention following the announcement of ERC-8004, a new AI-focused standard aimed at giving autonomous agents on-chain identity, reputation, and verification. On the surface, it looks like an emotionally uplifting innovation. Ethereum price has since increased by almost 2.5% in the past 24 hours.

But the market reaction tells a different story. Although large holders have stepped in and prices have stabilized, sentiment remains seriously depressed. The gap between structural progress and market confidence is currently the key tension shaping Ethereum’s next move.

ERC-8004 Price Impact?Why Ethereum’s AI Upgrade Doesn’t Drive Rise Yet

ERC-8004 is designed to support decentralized AI agents by providing portable on-chain identity, reputation history, and validation. Simply put, it allows machines to trust and transact with each other without the use of a centralized platform. This is a meaningful step for Ethereum’s long-term role in AI coordination.

However, sentiment data shows that the market is not reacting like it did during Ethereum’s last major upgrade cycle.

Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

When the Pectra upgrade went live on mainnet in May 2025, positive sentiment for Ethereum skyrocketed. On the day of launch, the positive sentiment score was around 259, but within three days it rose to 610, an increase of about 135%. This expansion in sentiment preceded a multi-month rally for Ethereum through late summer (August), after which sentiment reached a yearly high near 749 before the price finally peaked.

ERC-8004 Unable to lift emotions: Santiment

The contrast today is striking. During the rollout of ERC-8004, Ethereum’s positive sentiment score hovered around 18, its lowest value in the past year. Compared to Pectra’s launch baseline of 259, current sentiment is down over 90%.

The reason lies in the nature of the upgrade. Pectra was a protocol-level improvement related to scalability, efficiency, and network fundamentals that directly impacted users and pricing. In contrast, ERC-8004 is more like an application layer standard. Although this is structurally important, its benefits are in its infancy and not yet recognized by most market participants.

In other words, ERC-8004 is important for the future of Ethereum. But looking at sentiment data, it’s clear the market hasn’t priced in that future yet.

RSI rebound begins and whales increase – but smart money remains cautious

Although sentiment remains weak, on-chain actions indicate a different demographic positioning. However, you should check the price chart first.

From a technical perspective, Ethereum recently showed a hidden bullish divergence between December 18th and January 25th. Prices have hit higher lows and the Relative Strength Index (RSI) has hit lower lows. RSI measures momentum. This setup typically indicates that selling pressure is easing, rather than indicating the onset of a full trend reversal. A subsequent rebound confirmed stabilization and a bear flag breakdown was also avoided.

To break the bearish pattern, Ethereum price only needs to form a close above $3,160.

Breakdown avoided: TradingView

In addition to hopes for its stabilization and bearish nullification, large holders intervened. Ethereum whale increased its holdings from 104.18 million shares $ETH Up to 104.61 million people $ETH Following the announcement of ERC-8004. Approximately 430,000 additional $ETH. At average prices, this equates to approximately $1.3 billion cumulatively.

Ethereum Whale: Santiment

This is not a small buck who reacts emotionally to a headline. It’s a slow and deliberate positioning.

However, another indicator dampens the immediate bullish interpretation. The smart money index, which tracks participation from historically well-timed capital, remains below the signal line. In previous cycles, meaningful rallies for Ethereum began only after this index crossed upward. The last clean break in the signal line preceded a rally of about 13%. That confirmation has not yet been made.

Smart Money Index: TradingView

Taken together, the message is clear. The whale is accumulating weakness and is likely in the long term. Consistent with the weakness, smart money is not yet chasing momentum. This is positioning, not speculation. This outlook could keep the impact on ERC-8004 prices low.

Double Bottom Sets Ethereum Price Path to $4,000?

Only once sentiment and positioning are understood can the larger price structure come into focus.

Ethereum has recently avoided a break and is forming a double bottom (W) structure on the daily time frame. This pattern reflects demand pushing into similar lows, creating the potential for a broader recovery once resistance levels are cleared.

This structure defines a clear ladder of levels.

The first resistance zone is near $3,160. Above that, the key double-dip neckline lies in the $3,390 to $3,400 range. This level is important. A sustained break above that will activate the pattern rather than just hinting at it.

Ethereum Price Analysis: TradingView

If this neckline is confirmed and recovers, this structure opens conditional upside targets near $3,790 and $4,170. Further extension towards $4,410 would require not only price strength, but also significant sentiment expansion and smart money participation.

Without that confirmation, the pattern remains a potential energy rather than a trigger. On the downside, the argument weakens below $2,930. However, a loss of $2,780 could invalidate the double bottom structure and cause the Ethereum price level to fall.

The post Ethereum Whale Adds $1.3 Billion on ERC-8004 Hype — But One Indicator Still Halts the Rise appeared first on BeInCrypto.