Ethereum is showing notable relative strength as it reclaims the $3,150 level and attempts to push higher, signaling the first signs of recovery after weeks dominated by heavy selling pressure, fear and uncertainty. The broader market rebound has helped restore confidence, but ETH’s ability to outperform major altcoins highlights growing demand and improving sentiment around the asset.
Adding to the renewed optimism, new on-chain data from Lookonchain reveals significant movement from one of the most recognized whales in the market. During the rebound, the 0xdECF whale deposited an additional 5,000 ETH, worth approximately $15.52 million, into Binance.
This wallet became famous for sending large batches of ETH to exchanges throughout the recent downturn, often coinciding with times of increased volatility and capitulation.
Its latest filing suggests that the whale remains very active and responsive to market conditions. While such moves can sometimes introduce uncertainty, they also highlight growing liquidity and commitment from major holders. With prices returning to key levels and whales repositioning, Ethereum is entering a critical phase where sustained strength could confirm a broader shift in market structure.
Ethereum Whale Distribution Highlights Market Caution
According to Lookonchain, whale 0xdECF has sold 25,603 ETH, worth approximately $85.44 million, on Binance and Galaxy Digital since October 28. Despite this large distribution, the wallet still holds 5,000 ETH (approximately $15.52 million), suggesting that the whale has not completely exited its position but has significantly reduced its exposure during the recent market decline.
This behavioral pattern provides important insight into the sentiment of large holders: even if they are not abandoning Ethereum completely, they are actively managing risks and reacting to volatility more aggressively than usual.
Such persistent selling pressure from a large portfolio often acts as a drag on prices during periods of weakness, particularly when market liquidity is low. However, the fact that the whale continues to maintain a significant position indicates an expectation of potential recovery – or at least a desire to remain strategically exposed to future rises.
Ethereum is now in a critical phase. The asset has returned to key levels, but its medium-term structure remains very sensitive to macroeconomic conditions and whale behavior. If sales by major holders slow and accumulation begins to outpace distribution, the recent rebound could consolidate and become a lasting trend. Otherwise, further selling flows could put Ethereum at risk of revisiting lower support zones.
ETH regains short-term momentum but faces strong resistance
Ethereum’s daily chart shows clear improvement in momentum after reclaiming the $3,150-$3,200 region, but the broader structure remains fragile. The rebound from the $2,750-$2,850 support zone marked a decisive shift in buyer behavior, with strong lower wicks indicating aggressive demand. This rebound has pushed ETH above key levels in the near term, but the asset still faces a difficult road ahead.
The price is now approaching the 50-day SMA, currently falling just above $3,250, which is now immediate resistance. This moving average has capped every rally since late October and remains the first major hurdle for the bulls to recover. Beyond that, the 100-day SMA around $3,450 and the 200-day SMA near $3,600 form a tight group of overhead resistance that defines the medium-term downtrend.
The volume of the recent rebound is stronger than previous attempts, indicating that buyers are showing more conviction than during the mid-November recovery attempts. However, the overall trend remains bearish until ETH can move above the 50-day SMA and start closing daily candles above $3,300.
Ethereum is in a critical inflection zone: holding above $3,100 strengthens the case for continued recovery, while rejection of the $3,250-$3,300 band could trigger a retest of the $2,800 region. The next few sessions will determine whether this rebound evolves into a deeper trend reversal.
Featured image from ChatGPT, chart from TradingView.com
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