Ethereum Drops 13% in Week, Whales Accumulate 871,000 ETH

Ethereum's price experienced a significant decline, dropping by 13% over the course of a week. Despite this sharp decrease, major investors, often referred to as "whales," have shown no signs of panic. Instead, they have been increasing their purchases, indicating a bullish outlook for the medium term.

Within a span of ten days, Ethereum's value plummeted by more than $600, falling from $2,869 to $2,233. This drop was primarily driven by geopolitical tensions, which could have triggered a wave of panic selling. However, onchain analysis data paint a different picture. According to CryptoQuant, wallets holding more than 10,000 ETH accumulated over $265 million on June 21. Additionally, net inflows to "smart money" wallets surpassed 871,000 ETH, marking a record since 2017. This sustained accumulation suggests that major investors are anticipating a near-term recovery for Ethereum.

Another indicator of institutional confidence is the performance of spot ETFs. Products like BlackRock’s have not recorded any significant outflows since their launch. In fact, they continue to attract capital, signaling that institutions are increasingly turning to Ethereum as a strategic digital asset.

Technically, Ethereum's weekly chart shows a structure similar to the consolidation phase observed between 2019 and 2021. The price is trading above its 50-week moving average, forming a bullish chart pattern known as an ascending triangle. Some crypto experts believe that the ETH token could break its all-time high if this pattern holds. However, there are also warnings. If the $2,350 resistance level does not break, a fallback to $2,100 or even $1,800 remains possible. In extreme cases, some analysts mention a potential drop to $900 if selling pressure persists.

The market remains tense, but the accumulation signals on Ethereum are clear. With a solid technical outlook, the market’s second-largest cryptocurrency appears to be preparing for a rebound. A breakout above $2,350 could significantly alter the market dynamics, potentially leading to a bullish trend. The future of Ethereum's price movement will be closely watched by investors and analysts alike.