Ethereum Whales Accumulate Despite 22% Price Drop

Ethereum's price has dropped by 22% recently, but this decline has been accompanied by increased whale accumulation, raising questions about the market's direction. According to COINOTAG, this whale buying activity could indicate that institutional investors are positioning themselves for a market rebound or capitalizing on perceived discounts in the market.

Ethereum initially experienced a brief price spike following an endorsement by Eric Trump. However, this momentum was short-lived, and the cryptocurrency's value subsequently dropped dramatically by 22%. This decline can be attributed to several factors, including a $1.5 billion hack on the Bybit exchange, rising global economic uncertainty, and unmet expectations for more favorable crypto regulations.

Contrary to Ethereum's significant price drop, whale activity has soared, with an impressive accumulation of 110,000 ETH within 72 hours. Data from Santiment indicates a marked increase in transactions among large investors, suggesting that they may be anticipating a market rebound or simply taking advantage of lower prices. Historical data shows that periods of intense whale activity sometimes precede significant recoveries, although such trends do not guarantee similar outcomes.

Traders and investors should pay close attention to the critical range between $2,100 and $2,135. Stability in this zone could foster bullish sentiment, while a sustained decline below this level may indicate that whales are merely securing liquidity against a deeper correction. Ethereum's current oversold RSI at 38.90 and the concerning MACD bearish crossover suggest that the cryptocurrency may continue to face downward pressure.

If whale buying is indeed to preempt a market recovery, reclaiming the $2,200 to $2,300 range is essential for validating a potential short-term rally. Investors, especially retail, should remain cautious, as future support levels below $2,100 place the next major demand zone around $1,900 to $2,000. Careful observation of market trends and confirmation of bullish momentum is critical in determining the market's true direction.