Ethereum Whale Activity Hits Six-Week High Amid Price Drop
Ethereum has seen a significant retracement, dropping over 13% since Monday to a low of $2,380 on Friday, raising concerns among investors. On-chain data from Santiment indicates a surge in whale activity, reaching a six-week high coinciding with the price decline.
This increase in large transactions suggests potential accumulation by whales, often interpreted as a bullish signal near key support levels. Historically, large-scale buying during downturns reflects confidence in future recovery, as these holders typically seek undervalued assets.
The upcoming days are critical for Ethereum as investors watch for signs of stabilization or further decline. A solid hold above recent lows may facilitate a rebound, while failure to maintain support could amplify bearish sentiment. Attention is focused on both Ethereum’s price movements and whale behavior for insights into its near-term direction.
Ethereum Preparing For A Rally?
Despite the recent price drop, investor and analyst sentiment remains bullish. Data from Santiment shows whale activity peaked at a six-week high as the price fell to $2,380.
This spike indicates accumulation by whales—large stakeholders with substantial capital—signaling renewed confidence in Ethereum’s long-term value at current prices.
While an immediate price rebound is not guaranteed, historical patterns suggest that major accumulation phases occur during price weakness, laying groundwork for upward movement.
Ethereum's price action has been subdued recently, struggling to break out despite occasional bullish sentiment. Analysts attribute this to heavy accumulation by institutional investors during low momentum periods.
Increased whale activity may indicate Ethereum is preparing for a stronger move post-accumulation. If support from high-cap stakeholders continues, Ethereum's price may reflect this renewed confidence.
Investors are monitoring consolidation near key support levels, which may signal a breakout. Continued whale accumulation could drive upward momentum, supporting the bullish outlook shared by many analysts.
ETH Price Action
Ethereum is currently trading at $2,466 after pulling back from $2,550, indicating challenges in maintaining bullish momentum. This retracement brings ETH closer to recent local lows but maintains a sideways pattern, slightly bullish as it hovers above key support areas.
Bulls need to push above $2,550 to regain control. Breaking this level would indicate renewed strength and allow ETH to target the 200-day exponential moving average (EMA) at $2,783, potentially reinforcing bullish sentiment.
If Ethereum fails to rise soon, prolonged consolidation or deeper correction may occur, increasing bearish pressure and leading ETH to revisit previous support levels as traders reassess market direction.
Currently, Ethereum’s price action is balanced, with the $2,550 level and the 200-day EMA as crucial milestones for bulls seeking to sustain an uptrend.
Featured image from Dall-E, chart from TradingView