Ethereum Rebounds, Whales Accumulate Amidst Market Recovery

Ethereum, the second-largest cryptocurrency by market capitalization, has been subject to mixed signals in recent weeks, with prices fluctuating amidst low market sentiment and plunging altcoin prices. The asset has seen a significant decline, falling below the $3,000 mark and experiencing heightened sell pressure that has forced many retail traders to exit the market.

However, there have been signs of recovery in the past 24 hours, with enormous ETH accumulations recorded and positive altcoin activity observed. Ethereum's price currently stands at $2,739, having grown by 1% in the past 24 hours and rebounding from weekly lows. Despite the recent market correction, which saw major positions wiped out and trading volumes decline, some experts remain optimistic about Ethereum's prospects.

Expert trader Ali Martinez has suggested that Ethereum could slip to $2,300 before experiencing a rebound to $4,000. In a best-case scenario, Ethereum could test the $2,300 support level and then rebound towards $4,000. However, Martinez also warned that this could potentially be shaping up as a double-top pattern, which would indicate a more bearish outlook.

The potential for a surge to $4,000 could be bolstered by a wider market recovery, particularly in the decentralized finance (DeFi) sector. Institutional appetite for Ethereum has been growing, with whales purchasing over 400,000 ETH in the last 72 hours in anticipation of expected gains. This increased institutional interest could help drive Ethereum's price higher.

In addition to Ethereum, other altcoins have also shown signs of recovery in recent hours. Hourly figures indicate a slight momentum in altcoins, with positive on-chain metrics supporting this trend. Assets such as XRP, Solana, and Cardano have all gained in value, with XRP up 4%, Solana up 2.5%, and Cardano up 4.6%. While it remains to be seen whether a full-blown altcoin season is on the horizon, a recovery in Bitcoin's price could further boost these assets.