Ethereum is showing signs of weakness as it struggles to reclaim higher price levels amid sustained selling pressure and broader market uncertainty. After several failed attempts to breach the key resistance near $3,600, the asset remains range-bound, reflecting the cautious sentiment in the crypto market. Despite this, several analysts believe that the current phase could represent the final shake-up before Ethereum begins its next major rally.
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According to recent on-chain data, large holders – including institutional players and crypto whales – continue to accumulate ETH even as volatility persists. This steady influx of large buyers suggests growing confidence in Ethereum’s long-term potential, especially as the network’s fundamentals remain strong and liquidity conditions begin to stabilize.
The divergence between price weakness and whale accumulation highlights a recurring trend seen in previous cycles, where accumulation intensifies near local lows before a significant recovery. While short-term traders remain defensive, long-term investors appear to be positioning themselves for a possible breakout once macroeconomic conditions improve.
Whale Activity Signals Further Ethereum Accumulation Ahead of Potential Rally
According to on-chain data, the famous Ethereum whale “66kETHBorrow” – already one of the most active big buyers in recent weeks – has made another major decision. Having purchased 385,718 ETH worth approximately $1.33 billion since early November, this whale has now borrowed an additional US$120 million from Aave and transferred it to Binance, a move widely interpreted as preparation for further accumulation.
Such behavior from a player with high capital often indicates renewed confidence in Ethereum’s medium-term prospects. By leveraging borrowed funds, the whale increases its exposure, suggesting the expectation of a significant price rebound. This type of leveraged accumulation can create upward pressure in the market, especially when liquidity is low and sellers are exhausted.
However, this strategy also carries risks. If Ethereum fails to hold its current support near $3,400-$3,500, the whale could face increasing liquidation pressure, amplifying volatility across the entire market. Nonetheless, the scale and persistence of these purchases indicate that the smart money continues to buy the dip, positioning themselves ahead of what could be a major recovery phase.
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Ethereum consolidates as bulls attempt 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 the bulls and bears. After weeks of selling pressure, ETH is attempting to stabilize, finding support at the 200-day moving average (red line), which continues to serve as a critical long-term defense level.
Although it failed to reclaim the 50-day moving average (blue line), currently near $3,700, the structure suggests that bearish momentum is weakening. Recent candles show tighter ranges and falling volume, often a sign of equilibrium 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 group lies.
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On the other hand, if ETH loses the $3,400 support zone, the next major area of interest is around $3,100, which aligns with previous reaction lows and the psychological barrier that buyers have historically stepped into.
Featured image from ChatGPT, chart from TradingView.com
