Ethereum News Today: Ethereum Whales Absorb $3.2M ETH Amid Volatile $3,100 Battle

Ethereum (ETH) surged past $3,090 on Friday amid persistent accumulation by large investors and a broader market trend of whale buying. The price briefly dipped below $3,100 after a 3% decline, but accumulation addresses have continued to absorb significant ETH volumes.

November saw a record 3.24 million ETH flow into these accumulation addresses, signaling strong buying activity despite the recent drawdown.

Whale accounts also increased their holdings by 480,000 ETH in just a few days, reinforcing the idea that institutional and high-net-worth investors see value in Ethereum. These movements have occurred as the price has tested the 50-day EMA and breached key support levels. Analysts are watching whether this support can hold to prevent further downside.

The broader crypto market also showed mixed signals. Bitcoin (BTC) traded above $92,000, supported by improved momentum indicators, while XRP faced challenges in holding above $2.00 amid growing selling pressure. Ethereum ETFs continued to see outflows, contrasting with XRP ETFs, which extended their inflow streak. This divergence highlights a shift in investor sentiment and the role of ETF dynamics in shaping market narratives.

Why the Standoff Happened

Ethereum's price has been caught in a tug-of-war between strong accumulation and technical resistance. The 50-day EMA at $3,100 has served as a key psychological barrier, with ETH breaching this level after a failed attempt to gain ground. The breakdown has triggered liquidations, with $139.2 million in long positions being wiped out in the past 24 hours, as per Coinglass data. This volatility underscores the fragile balance between bullish buying and bearish selling pressure.

Whale buying, particularly in accounts holding 10,000–100,000 ETH, has continued to add to their holdings. These large investors often act as market stabilizers, accumulating ETH when prices approach their average cost basis. The average cost for these whales has historically served as a strong support level, and ETH has bounced off it multiple times this year.

How Markets Reacted

The broader market reaction has been mixed. Bitcoin's price recovery, supported by positive momentum indicators like the MACD, suggests a potential rebound toward $96,000 if the 50-day EMA is flipped to support. However, Ethereum remains below this key moving average, with its RSI and Stochastic Oscillator in bearish territory. This divergence between BTC and ETH highlights the uneven distribution of investor sentiment.

Ethereum's layer-2 ecosystem has also been gaining traction, with networks like Base and Polygon experiencing significant transaction growth. These developments have somewhat offset the decline in base-layer usage, as the recent Fusaka upgrade aimed to improve rollup efficiency and reduce fees. This layer-2 activity may help sustain Ethereum's utility and demand despite a weak macroeconomic environment.

Risks to the Outlook

The immediate risk for Ethereum is a breakdown below $2,850, which could trigger a deeper correction toward $2,380. If ETH fails to find support at an ascending trendline or the $2,850 level, the downward momentum could intensify, especially with bearish indicators like the RSI and Stochastic Oscillator still in decline. Additionally, large inflows of ETH into exchanges, such as the 162,084 ETH deposited into Binance on December 5, raise concerns about potential sell pressure.

Ethereum ETFs have also seen outflows, with $65.59 million leaving the product in the first week of December alone according to reports. This trend could exacerbate selling pressure, especially if institutional investors continue to reduce their exposure. The divergence between accumulation and ETF outflows underscores the split in market sentiment, with retail and institutional players following divergent strategies.

What This Means for Investors

For retail investors, the current price action presents a cautious outlook. While accumulation addresses and whales continue to build positions, the broader technical indicators remain bearish. Investors are advised to monitor key levels such as $2,850 and $3,470, as a breakout above the latter could signal a more bullish phase. However, a rejection near the 50-day EMA could lead to renewed bearish momentum.

Institutional investors and whales, on the other hand, appear to be capitalizing on the volatility. The recent accumulation of 480,000 ETH by whale accounts suggests confidence in Ethereum's long-term value. The resumption of bullish activity ahead of the Fed's rate-cut decision adds another layer of complexity to the market narrative.

As the Federal Reserve prepares to cut interest rates on December 10, market participants will be watching how this decision impacts risk appetite. A cut could provide a short-term boost for ETH, especially if it triggers a broader risk-on environment. However, unless Ethereum can break out of its current consolidation range, the long-term trajectory remains uncertain.