Ethereum is showing signs of weakness as it tries to regain higher price levels amid continued selling pressure and broader market uncertainty. After several failed attempts to break the key resistance near $3,600, the asset remains in narrow range, reflecting the cautious sentiment in the cryptocurrency market. Still, several analysts believe that the current phase could represent the final shake-up before Ethereum begins its next massive rally.
According to the latest on-chain data, immense holders – including institutional and crypto players – continue to accumulate ETH even as volatility continues. This steady inflow from immense buyers suggests growing confidence in Ethereum’s long-term potential, especially as the network’s fundamentals remain sturdy and liquidity conditions begin to stabilize.
The discrepancy between price weakening and whale accumulation highlights a repeating pattern seen in previous cycles, where accumulation intensifies near local lows before a significant recovery occurs. While short-term investors remain defensive, long-term investors appear to be positioning for a potential breakout as macro conditions improve.
Whale activity signals have renewed Ethereum accumulation ahead of a potential surge
By on-chain datathe well-known Ethereum whale “66kETHBorrow” – already one of the most busy immense buyers in recent weeks – has made another essential move. After purchasing 385,718 ETH worth approximately $1.33 billion since the beginning of November, this whale has now borrowed an additional $120 million USDT from Aave and transferred it to Binance, which is widely interpreted as preparation for further accumulation.
Such behavior by a high-cap market participant often signals renewed confidence in Ethereum’s medium-term prospects. By using borrowed funds, the whale is increasing its exposure, suggesting expectations for a significant price rebound. This type of leveraged accumulation can create upward pressure in the market, especially when liquidity is tight and sellers are exhausted.
However, this strategy also carries risks. If Ethereum fails to maintain current support around $3,400-$3,500, the whale could face increasing liquidation pressure, which will enhance volatility in the broader market. Still, the scale and persistence of these purchases indicate that intelligent money is continuing to buy the dip, ahead of what could be a major recovery phase.
Ethereum Consolidates Above as Bulls Try to Regain Control
Ethereum’s daily chart shows a clear consolidation pattern forming above the $3,450-$3,500 zone, signaling a continued battle between bulls and bears. After weeks of selling pressure, ETH is trying to stabilize, finding support at the 200-day moving average (red line), which continues to be a critical long-term defense level.
Despite the lack of a rebound in the 50-day moving average (blue line), which is currently near $3,700, the structure suggests that the decline momentum is weakening. Recent candles show narrower ranges and decreasing volume, which is often a sign of balance before a potential breakout. For Ethereum to confirm a trend change, bulls need a decisive close above $3,650, which would open the door towards $3,900-$4,000, where the next key resistance cluster lies.
On the other hand, if ETH loses the $3,400 support zone, the next major area of concern will be the area around $3,100, which coincides with the previous reaction lows and the psychological barrier that buyers have entered in the past.
Featured image from ChatGPT, chart from TradingView.com
