Ethereum Drops 3% to $2,555 Amid Large Investor Accumulation

Ethereum, the second-largest cryptocurrency by market capitalization, experienced a 3% decline to $2,555, testing its months-long consolidation between $2,400 and $2,800. Despite this dip, Ethereum's market cap remains robust at $308 billion, maintaining its position as a key player in the cryptocurrency market.

On-chain data reveals significant accumulation by large investors, with wallets holding 1,000-10,000 ETH purchasing over 800,000 ETH daily last week. On June 12 alone, these wallets acquired 871,000 ETH, the highest daily net inflow year-to-date. This buying spree indicates strong confidence in Ethereum's potential for a breakout, with these large investors now holding a total of 14.3 million ETH.

Institutional investors are also actively participating in this accumulation phase. Ethereum ETF inflows exceeded $21.3 million on June 16, with BlackRock and Fidelity leading the charge. This brings the total ETH inflows recorded since June began to over $800 million. Historically, sustained buying pressure at this scale has preceded major price breakouts.

Crypto market analyst TedPillows, an investment partner at OKX, has identified a developing golden cross formation on Ethereum’s price chart. The last occurrence of this pattern in May resulted in a 35% jump in ETH within just three days. Pillows anticipates an even stronger rally this time, suggesting that Ethereum could be on the verge of a significant price increase.

Despite the current subdued price action, Ethereum remains the dominant player in decentralized finance (DeFi). With over 1,374 protocols operating on its blockchain, Ethereum maintains a total value locked (TVL) of approximately $65 billion, surpassing the combined DeFi TVL of all other blockchains. Ethereum also leads the stablecoin sector with a market capitalization exceeding $127 billion, far ahead of its competitors.

Ethereum’s current price action reveals a consolidation pattern within the mid-range of a parallel channel formation. This extended period of sideways movement indicates that the cryptocurrency may be building momentum for an impending breakout. Should Ethereum successfully break above the upper boundary of the parallel channel with strong volume confirmation, the pathway toward the $3,000 target becomes far more achievable. This would represent approximately an 18% upside move from current levels, establishing it as a technically meaningful objective.

Ethereum is also developing a promising bullish pattern near the $2,440 support level. Should this formation confirm, it could trigger a multi-wave advance with projected targets at $3,300, $3,800, and ultimately $4,500. These levels represent substantial upside potential from current price levels. Before this upside scenario activates, ETH must first overcome a key technical hurdle at the $2,801 resistance level. A decisive breakout above this threshold would validate the pattern and likely accelerate buying momentum.