Ethereum has entered a consolidation phase after a tumultuous period of selling pressure caused by macroeconomic uncertainty and market fear surrounding the US government shutdown. Over the past week, Ethereum’s price has stabilized around the $3,500 level after briefly falling below key supports as investors and institutions reassess risk exposure in the cryptocurrency market.
Despite the cautious sentiment, on-chain data reveals a contrasting story – immense holders, or “whales”, have been quietly accumulating ETH during the downturn. Several high-value wallets have significantly increased their positions in Ethereum, according to data from Lookonchain and CryptoQuant, signaling growing confidence among long-term investors even as broader market dynamics leisurely.
This phase of accumulation suggests that sophisticated players view current price levels as an opportunity rather than a sign of broader weakness. Historically, similar whale purchasing patterns during periods of macroeconomic uncertainty have preceded periods of recovery and renewed market strength.
Whale activity suggests strategic accumulation despite market uncertainty
According to data from Lookonchain, a whale known for aggressive Ethereum accumulation, just bought an additional 30,548 ETH ($105.36 million) in the last hour. This move brings his total acquisitions since November 4 to an astonishing 385,718 ETH worth approximately $1.33 billion.
Notably, approximately $270 million of the funds used for these purchases were borrowed from decentralized lending platform Aave, highlighting a highly leveraged yet strategic position.
This type of activity often signals mighty institutional confidence in Ethereum’s medium-term prospects. Borrowing immense sums to accumulate ETH indicates that the whale expects prices to rise significantly enough to offset borrowing costs and volatility risks. This also reflects the growing demand for Ethereum exposure within decentralized finance (DeFi), where whales are leveraging platforms like Aave to optimize capital efficiency.
Such large-scale purchases can have many consequences: they consume available market liquidity, strengthen psychological support zones, and may trigger a change in sentiment among retail investors who interpret the move as bullish. However, this also introduces potential short-term risk – if prices correct further, leveraged positions may raise volatility.
Overall, the data points to renewed accumulation dynamics, suggesting that sophisticated market participants are preparing for Ethereum’s next major move.
Bulls are trying to regain momentum
Ethereum (ETH) is currently showing signs of stabilizing after weeks of intense selling pressure, and is trading at around $3,479 at the time of writing. The daily chart shows ETH holding just above the 200-day moving average (red line) – a key long-term support level that has historically acted as a starting point for a bullish recovery.
After falling below $3,200 earlier in the week, Ethereum has rebounded strongly, supported by renewed whale accumulation and improved market sentiment. However, the 50-day (blue) and 100-day (green) moving averages remain above the current price, indicating that the short-term trend is still tilted to the downside. For the bulls to regain control, ETH must decisively close above $3,650-$3,700, where the resistance confluence is located.
Sales volume data suggests that sales pressure is gradually easing, but momentum remains delicate. If Ethereum fails to hold the $3,400-$3,450 zone, the next major support will be near $3,200. On the other hand, regaining the $3,700 level could pave the way for a recovery towards $4,000.
Overall, Ethereum appears to be in a consolidation phase where immense holders are accumulating while retail investors remain cautious – a structure that often precedes a stronger directional move.
Featured image from ChatGPT, chart from TradingView.com
