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Ethereum has suffered a sharp pullback, falling more than 13% since Monday, raising concerns among investors who had expected a breakout. This sudden pullback, which left ETH at a low of $2,380 on Friday, has injected a sense of concern into the market, leaving many questioning the strength of the recent rally. However, on-chain data from Santiment reveals an intriguing development: Whale activity in Ethereum rose to a six-week high just as the price fell.
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This spike in large trades signals potential whale accumulation, a pattern that is often seen as a bullish signal when it occurs near key support levels. Historically, significant whale purchases during recessions indicate confidence in a future recovery, as these large holders tend to seek undervalued assets with high potential.
The coming days will be critical for Ethereum as investors await signs of stabilization or further decline. A solid position above the recent lows could set the stage for a recovery, while the inability to hold support could reinforce bearish sentiment. For now, all eyes remain on Ethereum’s price movements, as well as whale behavior, which could provide insight into Ethereum’s near-term direction.
Ethereum preparing for a rally?
Despite Ethereum’s recent price revision, sentiment among investors and analysts remains bullish for the foreseeable future. According to key data from crypto analysis platform SantimentWhale activity in Ethereum hit a six-week high as the price fell to $2,380 on Friday.
Historically, such a spike in activity by whales – major stakeholders with substantial capital – signals accumulation. When whales begin to accumulate, it is often an indicator of renewed confidence, suggesting that these key players see long-term value at current prices.
While an immediate price recovery is not guaranteed, this pattern is encouraging. Large accumulation phases typically occur during periods of price weakness or prolonged consolidation, laying the groundwork for potential upward movement.
Ethereum price action has been lackluster in recent months, with ETH struggling to break out despite occasional bullish sentiment. Some analysts suggest this may be due to heavy accumulation dynamics led by institutional investors or “smart money” investors who gradually increase their investments during periods of low momentum.
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As whales increase their activity, this is a possible sign that Ethereum is gearing up for a stronger move once accumulation is complete. With support from high-cap stakeholders, Ethereum’s price could ultimately reflect this newfound confidence.
For now, investors are closely watching for consolidation around key support levels, which could set the stage for a breakout. If whale accumulation continues in the coming weeks, it could provide upside momentum, confirming the bullish long-term outlook shared by many analysts and investors.
ETH price action
Ethereum is currently trading at $2,466, after falling from the $2,550 level, suggesting it is struggling to maintain bullish momentum. This retracement has brought ETH closer to its recent local lows but still within a sideways pattern, maintaining a mildly bullish outlook while hovering above key support areas.
If the Ethereum bulls want to regain control, a rise above $2,550 is crucial. Breaking this level would signal renewed strength and allow ETH to target the 200-day exponential moving average (EMA) of $2,783. If achieved, this would mark a new local high, potentially reinforcing bullish sentiment among investors.
However, if Ethereum’s price does not rise in the coming days, the chances of prolonged consolidation or even a deeper correction increase. Such a scenario would likely create additional bearish pressure, with ETH potentially revising previous support levels as traders reassess the market’s direction.
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For now, Ethereum’s price action is subtly balanced, with the $2,550 level and 200-day EMA representing crucial milestones for bulls looking to maintain an uptrend in the short term.
Featured image of Dall-E, chart from TradingView
Credit : www.newsbtc.com
