Ethereum is trying to regain stability after a acute sell-off on Tuesday that sent its price below $3,100. The decline caused widespread liquidations in the cryptocurrency market, and ETH briefly touched multi-week lows before finding support. As of today, bulls are trying to reclaim the $3,350 level, which is a near-term resistance zone that could determine whether the asset undergoes a broader recovery or faces another decline.

Despite the volatility, chain data reveals a different story beneath the surface. Huge investors – often called whales – continue to accumulate ETH, signaling long-term confidence in the network’s fundamentals. Their sustained buying activity stands in stark contrast to the fear-driven behavior of the broader market, suggesting that major bondholders view the recent correction as a buying opportunity rather than a turnaround.

Historically, whale accumulation during deep declines has often preceded a powerful rebound as institutional and long-term capital moves in and retail sentiment wanes. The challenge now is whether Ethereum can maintain momentum above key technical levels, especially as overall market confidence remains brittle. If buying pressure continues to mount, ETH could find grounds for a sustained economic recovery by mid-November.

Whales are accumulating ETH, which suggests an impulsive move forward

According to Lookonchain, Ethereum whales have done this together collected 394,682 ETH worth approximately $1.37 billion in the last three days. This wave of large-scale buying comes as prices consolidate below $3,400, signaling that deep-pocketed investors are getting ahead of a potential market rebound.

Such aggressive accumulation often indicates the clever money’s belief in future growth potential. Historically, when whales buy during periods of widespread fear and tender price action, it suggests they are anticipating an impulsive phase – a acute move driven by the restoration of liquidity and improved market sentiment. The scale and speed of this accumulation reinforce the view that these entities expect Ethereum to outperform as selling pressure eases.

This trend is also consistent with broader market behavior seen after immense liquidations, where institutional players tend to absorb supply from recovered traders. If ETH holds above its key support around $3,100, the combination of whale accumulation, improving on-chain inflows, and reduced leverage could act as a catalyst for a breakout towards the $3,600-$3,800 range.

ETH finds support at the 200-day MA

Ethereum’s daily chart shows the asset finding some fleeting relief after Tuesday’s acute sell-off, which pushed prices below $3,100 for the first time in weeks. The decline sent ETH lower to test its 200-day moving average (red line) – a key long-term animated support that historically acts as a springboard during corrective phases.

Ethereum is currently trading around $3,380, showing signs of a moderate rebound. However, bulls face immediate resistance near the $3,500-$3,600 range where the 50-day (blue) and 100-day (green) moving averages converge. The area has repeatedly rejected upward moves since behind schedule October and has likely set a short-term direction.

A decisive break above these averages could change the dynamics in the bulls’ favor, opening the door to a recovery towards $3,800. On the other hand, failure to hold above the 200-day MA could result in further weakness towards $3,000 or even $2,850 where previous demand zones existed.

Featured image from ChatGPT, chart from TradingView.com