Ethereum is on a quest for stability after experiencing a dramatic selloff on Tuesday that saw its price tumble below $3,100. This significant decline not only influenced Ethereum but also resulted in widespread liquidations within the broader cryptocurrency market, with ETH briefly reaching multi-week lows before discovering a support level. Today, bullish traders are aiming to reclaim the crucial $3,350 level, a short-term resistance threshold that could prove pivotal for determining whether the asset embarks on a broader recovery or faces another downturn.
Related Reading
In the midst of this volatility, on-chain analytics suggest a contrasting narrative. Major investors, often referred to as whales, have been steadily accumulating ETH, reflecting a robust long-term confidence in the underlying fundamentals of the network. This consistent buying behavior stands in stark contrast to the fear-driven actions prevailing among the broader market participants, indicating that these substantial holders perceive the recent dip as an entry point rather than a signal of an impending downturn.
Historically, the accumulation of assets by whales during significant price corrections has often been a precursor to strong recoveries, as these institutional and long-term players seize the opportunity to buy amid a weakened retail sentiment. The current challenge for Ethereum lies in maintaining momentum above critical technical levels while the overall market confidence remains shaky. If the buying pressure persists, ETH may establish a solid foundation for a sustained rebound as we approach mid-November.
Whales Actively Accumulating ETH, Indicating Potential Upside Move
Recent data from Lookonchain reveals that Ethereum whales have amassed a staggering 394,682 ETH, valued at approximately $1.37 billion, over the past three days. This significant wave of investment comes as ETH prices have consolidated beneath the $3,400 mark, suggesting that deep-pocketed investors are positioning themselves in anticipation of a market rebound.
This pattern of aggressive accumulation is often indicative of smart money positioning themselves for future upward potential. Historically, when whales make purchases during periods of widespread market anxiety and declining prices, it signifies that they expect an impulsive movement driven by a revitalization of liquidity and overall market sentiment. The speed and scale of this recent surge in accumulation bolster the narrative that significant holders anticipate Ethereum will outperform once the selling pressure subsides.
Moreover, this behavior aligns with the broader market trends observed post-major liquidations, during which institutional players typically absorb the supply left by shaken-out retail traders. Should ETH manage to stay above its vital support level near $3,100, the synergy of whale accumulation, increasing on-chain inflows, and reduced leverage could potentially act as a catalyst for a breakout toward the $3,600 to $3,800 range.
Related Reading
ETH Stabilizes at 200-Day Moving Average
Ethereum’s daily chart reveals that the asset is finding temporary relief after Tuesday’s drastic selloff, which saw prices plunge below $3,100 for the first time in several weeks. This decline prompted ETH to test its 200-day moving average (red line) — a critical long-term support level that has historically served as a rebound point during correction phases.
Currently, Ethereum is trading close to $3,380, indicating signs of a modest rebound. Nevertheless, bullish traders are confronted with immediate resistance around the $3,500 to $3,600 zone, where the 50-day (blue) and 100-day (green) moving averages converge. This area has consistently barred upward movements since late October and is poised to dictate short-term trends.
Related Reading
If ETH can decisively breach the resistance provided by these moving averages, momentum may shift back in favor of the bulls, paving the way for a recovery towards $3,800. Conversely, a failure to maintain stability above the 200-day MA might catalyze further declines towards $3,000 or even $2,850, where previous demand zones are likely to come into play.
Featured image from ChatGPT, chart from TradingView.com
