Ethereum Whales Accumulate as Price Hovers at $1,600, 25% Rally Possible

Ethereum's price has reached a critical juncture at $1,600, with significant implications for its future trajectory. A breakout above this level could validate a massive accumulation by whales, potentially triggering a 25% rally. Conversely, failure to sustain this level risks retesting lower supports, which could lead to further price declines.

The recent price dip below $1,600 has triggered cascading liquidations, causing the ETH/BTC ratio to drop below 0.02, hitting a five-year low. This shift has also led to a surge in Bitcoin dominance, as investors seek stability in the face of Ethereum's volatility. The market's reaction to these movements underscores the delicate balance between bullish and bearish sentiments, with whales playing a pivotal role in determining the next major trend.

A long-silent Ethereum whale has just made a major move, snapping up millions worth of ETH after nearly three years of inactivity. The timing raises eyebrows, especially as Ethereum’s price trades near multi-year lows. While some see the buy as a sign of long-term confidence, others point to rising volatility and mixed on-chain activity. With whales stirring and market sentiment fragile, Ethereum finds itself in a key moment, caught between renewed Ethereum accumulation and the threat of deeper downside.

The reactivation of a dormant wallet and a fresh multi-million dollar ETH purchase have injected new energy into Ethereum’s narrative. Coming after a sharp price drop in early 2025, the move suggests that smart money may view current levels as undervalued. This isn’t just speculative buying; it’s a patient investor re-entering during a stretch of widespread caution.

However, the market isn’t all green lights. At the same time, this whale bought ETH, and large inflows from other addresses, particularly one linked to Galaxy Digital, moved thousands of tokens to exchanges. That kind of activity usually signals incoming sell pressure, especially in times of thin liquidity.

Ethereum is now at a decision point. If buyers like this whale continue to accumulate, it could trigger broader demand and stabilize prices. But if exchange inflows continue and volume dries up, ETH may test even lower levels. For now, the whale’s return hints at confidence, but the market needs follow-through before any reversal is confirmed.

On the 1-hour timescale, the ETH/USDT graph shows a consolidation phase as prices move side by side from the $1,560 support and $1,600 resistance levels. Ethereum has been trading within a tight range since dropping following denial from the $1,680 resistance level. The low volatility experienced recently shows market indecision, probably indicating accumulation or expectations of a breakout. At 52.41, the RSI shows neutral momentum without obvious overbought or oversold signals.

Earlier levels show consolidation; formerly, RSI peaks and dips precisely matched price reversals. Furthermore, the MACD indicator underpins the absence of a trend since the MACD and signal lines meet close around the zero line, and the histogram displays little momentum. A movement above $1,600 could suggest bullish continuation toward the $1,680 area; a drop below $1,545 could provoke a more severe correction. Until then, price action holds in a holding pattern, waiting for a definitive breakout either way.

The accumulation by whales, who have been buying large amounts of Ethereum, suggests a bullish outlook. These significant purchases indicate that major investors are positioning themselves for a potential price surge. If the price manages to break above $1,600 and hold, it could signal the start of a new upward trend, with the potential for a 25% rally. This scenario would be validated by the whale's accumulation, as their holdings would likely appreciate significantly.

However, the risk of retesting lower supports remains a concern. If the price fails to sustain above $1,600, it could lead to further liquidations and a decline in investor confidence. This would likely result in a retest of lower support levels, potentially leading to a more prolonged period of price consolidation or even a downward trend.

The current market dynamics highlight the importance of whale activity in shaping Ethereum's price movements. Their accumulation of large amounts of ETH suggests a bullish outlook, but the market's reaction to price dips and liquidations underscores the need for caution. As Ethereum navigates this critical juncture, investors will be closely watching for signs of a breakout or a retest of lower supports, with the potential for significant price movements in either direction.