Ethereum's Price Drops 22.26% as Whales Accumulate 530,000 ETH

Ethereum's price action has been confined to a steep descending channel since November 2024, with consistently lower highs and lows. After rebounding from the $1,460 support zone, the price is now facing resistance near $1,815. If bulls manage to reclaim this level, the market structure could shift to bullish, setting the stage for a challenge of the upper channel resistance. However, until this happens, downside pressure will persist, with potential retests of key support levels if momentum fades.

On-chain activity, however, tells a different story. Daily active addresses surged to 573,000 and transaction count hit 1.42 million on the 9th of April, marking a significant spike in user engagement. This increased participation, despite price weakness, suggests rising interest in Ethereum’s ecosystem at discounted prices. Additionally, the MVRV Long/Short Difference has plummeted to -22.26%, a level often associated with maximum pain and ideal accumulation during historical bottoms.

Whale behavior has also intensified, with over 530,000 ETH moved across major wallets in just the past week, typically pointing to strategic accumulation or rebalancing. A dormant Ethereum OG that acquired ETH back in 2016 offloaded 10,702 ETH worth $16.86 million at just $1,576. This whale has consistently sold only during periods of significant market corrections, even avoiding sales when ETH surpassed $4,000. Such actions may indicate strategic exits or attempts at psychological manipulation designed to provoke retail panic, setting the stage for eventual market recovery.

Ethereum’s long-term holder capitulation, extreme MVRV readings, and increased whale activity all point to a classic accumulation setup. Rising network usage adds further confirmation that interest remains strong under the surface. Therefore, despite short-term volatility, all signals indicate that Ethereum is trading in a high-probability reversal zone. Smart investors may view this as one of the best risk-reward entry points before the next bullish leg unfolds.

The current market dynamics for Ethereum present a compelling narrative for potential buyers. With capitulation among long-term holders and increased whale activity alongside rising user engagement, the signs suggest a strategic accumulation phase may be underway. Investors should consider market trends and fundamentals as they navigate Ethereum’s potential recovery journey.