Ethereum News Today: Whale Accumulation Counters Ethereum's $3,400 Liquidation Threat

Ethereum is entering a critical phase of consolidation, with analysts and on-chain data suggesting the cryptocurrency could face significant volatility as it navigates key price levels. A potential dip toward $3,400 remains on the table, accompanied by risks of large-scale liquidations on major exchanges, while institutional accumulation and macroeconomic factors hint at longer-term resilience.

For Ethereum traders, a breakout above $3,600 could trigger up to $807 million in short liquidations on centralized exchanges, according to COINOTAG, which cited Coinglass data. Conversely, a drop below $3,400 might see $564 million in long positions liquidated, amplifying downside pressure. These thresholds highlight the fragility of current market positioning, with liquidation intensity reflecting clustered leverage at specific price points. Meanwhile, a confirmed breakdown below $3,650 could signal the start of a near-term correction phase, potentially pushing ETH toward $3,300—a level aligned with the 100-day moving average and prior support, according to a Coinpedia analysis.

Technical indicators further underscore the precarious balance. Ethereum faces stiff resistance between $3,950 and $4,000, a range that has repeatedly stalled bullish momentum. A sustained close above $4,000 could reignite optimism, opening the door to a rally toward $4,200–$4,300. However, momentum metrics like the RSI and MACD remain neutral to bearish, suggesting waning buyer strength, the Coinpedia analysis noted. On the downside, the $3,100 level is seen as a critical floor, with a 6% recent plunge in ETH prices despite record treasury holdings and institutional buying activity, as reported by FXStreet.

Institutional demand has emerged as a counterweight to short-term weakness. BitMine, a major player, has acquired 82,000 ETH during the recent dip, adding to its $12.4 billion holdings, according to a Coinpedia report. On-chain analysis reveals broader accumulation by whale investors, with at least 15 entities holding 4.75 million ETH for treasury management, and the regional flow dynamics are highlighted in an Investing.com analysis. The analysis shows U.S. investors selling aggressively, while Asian exchanges record positive net flows driven by Chinese and Singaporean participants. Such regional divergences mirror patterns seen in prior corrections and could signal a stabilization phase before a gradual recovery.

The Ethereum ecosystem's structural health is also evident in Layer-2 growth. Platforms like Arbitrum and Optimism have maintained total value locked above $20 billion, demonstrating adoption despite price declines. Meanwhile, projects like Remittix (RTX) have secured $27.8 million in funding, positioning themselves to benefit from improved market sentiment, as noted in the Investing.com analysis.

Looking ahead, the path for Ethereum hinges on macroeconomic clarity and risk appetite. While near-term bearish momentum could test $3,300 and $3,100, underlying fundamentals—including rising stablecoin activity and institutional inflows—support a medium-term recovery toward $4,000–$4,500. Analysts caution that a return to $7,000 by late 2026, as projected by some bullish forecasts, would depend on broader crypto inflows and policy stability, according to the Investing.com analysis.