Ethereum Drops 5% Amid Tariff Announcement, Whales Accumulate

Ethereum (ETH) has experienced a significant price decline, currently trading around $1,700-$1,777, marking a 5% drop in the past 24 hours. This downturn is part of a broader market decline triggered by the announcement of reciprocal tariffs by the US President. Despite the overall bearish sentiment, large investors, known as "whales," have been actively accumulating ETH, indicating long-term optimism. Wallets holding between 10,000 and 100,000 ETH have been increasing their holdings at an accelerated rate since early 2025, suggesting that these investors believe ETH is undervalued at current price levels.

Historical price patterns show similarities between ETH’s current trend and its 2020 trajectory, which could signal a potential recovery. Analysts like Mister Crypto suggest that if history repeats itself, ETH might experience strong bullish momentum in Q2 2025. Another analyst, Crypto Caesar, notes that ETH is approaching a bottom, trading near the same price level it held four years ago. However, CryptoBullet points out that ETH has touched the 300-week moving average for only the second time in its history, which has historically signaled a bearish trend.

Technical analysis reveals key resistance levels for ETH. The price faces resistance near the $1,810 level, with a short-term bearish trend line forming. The next key resistance is near the $1,840 level. If ETH can break above the $1,920 resistance, it might continue rising toward the $2,000 or even $2,050 price zone in the near term. Initial support on the downside is near the $1,765 level, with major support at $1,750. If this support fails, the price could drop toward $1,720 or even $1,680. Market expert Cryptododo7 has set bearish targets even lower, predicting that ETH may reach the $1,130 to $1,200 range before recovering. Despite these cautionary outlooks, market commentator Titan of Crypto maintains that ETH is still on track to reach new all-time highs later this year.

According to the analyst's forecast, ETH is currently trading below both the $1,820 level and the 100-hourly Simple Moving Average, indicating continued bearish pressure in the short term. The hourly MACD for ETH/USD is gaining momentum in the bearish zone, while the RSI remains below the 50 zone. These technical indicators suggest continued downward pressure in the immediate future. However, the accumulation of ETH by large investors and historical price patterns suggest that the current downturn may precede a significant rally in Q2 2025.