Ethereum News Today: Ethereum Whales Accumulate Amid Looming Death Cross, Market Hangs in Balance

A major Ethereum whale known as "7 Siblings" has borrowed an additional $61 million in USDC to expand its ETH holdings by 19,918 ETH, pushing its total purchases during this price correction to $72.49 million at an average price of $3,638 per token, according to a Panewslab report. This move underscores the ongoing strategic accumulation by large investors amid a volatile market, even as some whales face significant losses from failed bottom-fishing attempts.

The "7 Siblings" address group's latest purchase follows a contrasting transaction by another whale, identified as 0x1b57, which sold 5,570 ETH at $19.56 million, incurring a $2.15 million loss after attempting to capitalize on a market bottom that did not materialize, according to a Phemex article. These divergent actions highlight the risks and uncertainties in the crypto market, where even seasoned investors can misjudge timing.

Broader on-chain data reveals a mixed picture. Ethereum whales have added 200,000 ETH ($775 million) in the past 48 hours, signaling renewed confidence in a potential recovery, as noted in a Yahoo Finance report. The Money Flow Index (MFI) has also shown a bullish divergence, with inflows continuing despite lower price lows in late October. However, this optimism faces a critical test: a looming "death cross" where the 20-day exponential moving average (EMA) threatens to cross below the 100-day EMA. Such a technical pattern historically signals bearish momentum, and a repeat of the mid-October correction-which saw a 13.7% price drop-could undermine current gains.

Institutional activity further complicates the outlook. Bitmine, a major ETH holder, added 82,353 ETH last week, increasing its total holdings to $12.61 billion, according to Panewslab. Meanwhile, long-term Bitcoin holders have sold 400,000 BTC (nearly 2% of total supply) in the past month, adding downward pressure. The interplay between whale accumulation and long-term selling will likely determine whether the market can sustain its early November rally.

The "7 Siblings" strategy also reflects a broader trend of leveraging borrowed stablecoins to amplify exposure. By injecting $72.49 million into ETH, the whale has set a liquidation price of $3,348, a 9% buffer below the current price. This approach, while aggressive, aligns with the belief that Ethereum's short-term volatility could create buying opportunities for long-term holders.

Market analysts remain cautious. A confirmation of the death cross could trigger a 4.9% decline to $3,680, while sustained whale and retail buying might push prices to $4,069, validating the current bullish narrative. With support and resistance levels nearly equidistant, the next few days will be pivotal in shaping Ethereum's trajectory.