Ethereum News Today: Ethereum Dips 13% Amid Dollar Strength and Weak Payrolls But Whale Buys $300M in Dip

Ethereum (ETH) experienced a 13% pullback from recent highs amid a broader risk-off sentiment driven by a strong U.S. dollar and weak non-farm payroll data. The decline marked the first weekly loss in over a month, briefly pushing prices below $3,400. However, a significant whale purchase of $300 million worth of ETH emerged during the downturn, signaling confidence in a potential reversal. On-chain data from Arkham Intelligence revealed the accumulation occurred as prices dipped, aligning with a “buy the dip” strategy from a high-conviction buyer [1].

The recent price action has sparked a debate among analysts and traders about whether the correction is a temporary pause before a potential breakout or the beginning of a deeper decline. The divergence between price action and whale behavior suggests that while many are exiting the market out of fear, institutional-level accumulation indicates a medium- to long-term recovery outlook. This dynamic occurs as Ethereum continues to gain traction as an institutional asset, with the anticipation of ETF listings and on-chain upgrades adding to its appeal [1].

Ethereum is currently testing key Fibonacci levels and historical resistance zones. A clean break above $3,564 (38.2% Fib) could lead to a potential move toward $3,681 (61.8% Fib) and even $3,765, representing a high-probability bullish setup. However, momentum remains weak, with the 4-hour RSI at 39, just below the neutral zone. Without confirmation from volume or bullish divergence, the price may struggle at key resistance levels [1].

Traders are closely watching for a reversal candle pattern, such as a bullish engulfing, to confirm a breakout above $3,564. A successful move would likely see ETH target $3,681 and $3,765. Conversely, a rejection at $3,491 or $3,564 could drag prices back to $3,374 or even $3,267 [1].

The broader market context also includes growing interest in Bitcoin-native Layer 2 projects like Bitcoin Hyper ($HYPER), which has raised over $6.2 million in its presale. Such developments reflect the evolving utility and adoption of blockchain technology, particularly within the Ethereum and Bitcoin ecosystems [1].

In summary, Ethereum’s current price action reflects a tug-of-war between short-term bearish pressure and long-term bullish accumulation. While the immediate outlook remains uncertain, the whale activity and on-chain dynamics suggest that the market may not be signaling a deep decline but rather a consolidation before the next move. As Ethereum moves forward, the upcoming ETF developments and on-chain upgrades will likely play a critical role in shaping its price trajectory.

Source:

[1] Ethereum Price Prediction: Post-Rally 13% Drop – Is ETH Eyeing Deeper Correction or New Highs? (https://cryptonews.com/news/ethereum-price-prediction-post-rally-13-drop-is-eth-eyeing-deeper-correction-or-new-highs/)