Ethereum is trying to regain stability after Tuesday’s sharp sell-off that sent its price plunging below $3,100. The decline triggered widespread sell-offs in the crypto market, with ETH briefly touching a multi-week low before finding support. Currently, bulls are attempting to reclaim the $3,350 level, a near-term resistance zone that could determine whether the asset sees a broader recovery or faces further decline.
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Despite the volatility, on-chain data reveals a different story beneath the surface. Large investors – often referred to as whales – have continued to accumulate ETH, a sign of long-term confidence in the network’s fundamentals. Their steady buying activity stands in stark contrast to the fear-driven behavior of the market as a whole, suggesting that major holders view the recent correction as a buying opportunity rather than a reversal.
Historically, whale accumulation during deep pullbacks has often preceded strong rebounds, as institutional and long-term capital steps in as retail confidence weakens. The challenge now is whether Ethereum can maintain its momentum above key technical levels, especially as overall market sentiment remains fragile. If buying pressure continues to intensify, ETH could find the foundation for a sustainable recovery by mid-November.
Whales Hoarding ETH, Foreshadowing Impulsive Move
According to Lookonchain, Ethereum whales have collectively accumulated 394,682 ETH, worth approximately $1.37 billion, over the past three days. This wave of large-scale buying comes as prices consolidate below $3,400, signaling that deep-pocketed investors are positioning themselves for a potential market rebound.
Such aggressive accumulation often indicates intelligent confidence in future upside potential. Historically, when whales buy during periods of widespread fear and weak prices, it suggests that they are anticipating an impulsive phase – a sharp move driven by renewed liquidity and a recovery in market confidence. The scale and speed of this accumulation reinforces the idea that these entities expect Ethereum to outperform once the selling pressure eases.
This trend also aligns with broader market behavior seen after major selloffs, where institutional players tend to absorb supply from shaken traders. If ETH holds above its key support around $3,100, the combination of whale accumulation, improving on-chain inflows, and reduced leverage could serve as a catalyst for a breakout towards the $3,600-$3,800 range.
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ETH finds support at the 200-day MA
Ethereum’s daily chart shows the asset found temporary relief after Tuesday’s sharp sell-off, which sent prices falling below $3,100 for the first time in weeks. The decline caused ETH to test its 200-day moving average (red line) – a key long-term dynamic support that historically acts as a springboard during corrective phases.
Currently, Ethereum is trading around $3,380, showing signs of a modest rebound. However, bulls face immediate resistance near the $3,500-$3,600 range, where the 50-day (blue) and 100-day (green) moving averages converge. This area has repeatedly rejected bullish moves since late October and will likely set the near-term direction.
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A decisive break above these averages could shift momentum back in favor of the bulls, opening the door for a recovery towards $3,800. On the other hand, failure to sustain above the 200-day moving average could trigger further weakness towards $3,000 or even $2,850, where previous demand zones exist.
Featured image from ChatGPT, chart from TradingView.com
