Whale amassed over 420,000 Ethereum in five days – is the rally coming?

Ethereum whales accumulation shows long-term optimism

Ethereum has been in a serious downward trend, losing more than 57% of its value since late December. Despite a brief attempt to recover, ETH continues to fail as it recovers vital price levels, marking further downside risks. Ethereum now has trading levels below years of support, which has become a strong resistance, making it harder for the Bulls to recover their momentum.

Macroeconomic uncertainty and fear of trade wars have exacerbated the burden on crypto and traditional markets, leading to increased risk sentiment for investors. As U.S. stock market struggles, Ethereum is still under pressure, laying the foundation for possible deeper corrections.

However, not all signs are bearish. Some analysts believe Ethereum can recover in the next few months and the data on the chain shows potential signs of accumulation. Crypto analyst Ali Martinez shared santiment data, indicating that whales have purchased more than 420,000 Ethereum in the past five days.

Historically, large-scale whale accumulation has often been a strong long-term bullish signal for Ethereum. As whales increase their holdings, it usually indicates growing confidence in the future price appreciation of ETH. In previous cycles, buying whales at low prices was usually before major gatherings, as accumulation reduced the available supply on exchanges and increased buying pressure over time.

Related Reading: $90K emerges as Bitcoin psychological battlefield – Key levels determine market sentiment

Currently, Ethereum must return to key levels to confirm a trend reversal. If whales continue to accumulate, even if short-term price action remains volatile, ETH may be set for long-term recovery.

Eth Bulls strives to regain key levels

Ethereum is currently trading at $1,900 and has faced constant resistance after several days of struggle. The wider market weakness and sales pressure make it difficult for the Bulls to recover their momentum, and ETH is vulnerable to further declines if it does not return to key levels as soon as possible.

To confirm the recovery, the Bulls must raise ETH above $2,000 and then break through the crucial $2,250 resistance. These levels of successful recycling will mark the beginning of a potential recovery phase, allowing Ethereum to build momentum for a larger upward movement.

However, if ETH fails to recoup these levels, sales pressures may intensify, pushing prices toward lower demand areas. A break below current support could reduce ETH to the $1,700 range, and could drop further to $1,600 if bearish momentum continues to decline.

As market sentiment remains fragile, the next few days are crucial to determine whether Ethereum can stabilize and recover or whether it will face deeper corrections. Bulls need to step in as soon as possible to prevent further shortcomings and regain control of price action.

Featured images from DALL-E, charts from TradingView