Ethereum surged to a local low of nearly $3,360 after a local high of $3,940. Prices struggle to regain key resistance levels, amplifying concerns among traders that deeper corrections could be on the horizon. Market sentiment is cautious as bullish momentum fades and Ethereum integrates within its tightening range. Analysts warn that not regaining critical levels could quickly create even more negative pressure in the short term.
However, despite current weakness in prices, whales’ activity remains strong. New large players are actively accumulating ETH, according to Arkham Intelligence, a leading blockchain analytics platform that praises the people and businesses behind blockchain wallets and transactions. This address has added a significant amount of Ethereum over the past few days, continuing the recent trend in whale accumulation seen in the latest correction phase.
This continuous accumulation of facility-grade investors adds a layer of optimism to the medium- to long-term outlook for Ethereum. While short-term price action appears unstable, the strategic accumulation by whales suggests a strong confidence in the fundamentals of Ethereum. As supply for ETH exchanges continues to shrink, many believe this fix could be a healthy reset before the next leg goes up.
Whale accumulation demonstrates long-term trust in Ethereum
According to Arkham Intelligence, the whale address 0x86F911DEB6BB8CA5C36EDDF9EF86A9DC1F694446 has purchased $141.6 million worth of Ethereum (ETH) from Falconx in the past two days. Surprisingly, the whales have already sat on unrealized profits of over $1 million from these purchases, demonstrating both the timing of accuracy and strong belief in Ethereum’s long-term potential.
This accumulation stands out as a clear indicator of Tradfi capital flowing through Ethereum despite wider market sentiment. The timing of these purchases is particularly noteworthy as Bitcoin is currently facing cooling momentum after an offensive bull run, but most altcoins still struggle below critical resistance levels. Nevertheless, large investors are actively positioned at Ethereum, suggesting that they view their current price range as an opportunity to build strategic holdings.
The ongoing trend of whale accumulation reflects the broader market belief that Ethereum’s foundations remain solid. Institutional investors appear to focus on long-term drivers such as Defi, Stablecoin Infrastructure, and Ethereum’s leading role in RWA tokenization, all of which have gained traction among traditional financial institutions.
While short-term price measures may continue to see volatility, aggressive accumulation from addresses like 0x86F indicates that temporary fixes do not block larger players. Instead, they are preparing for what is expected to be a significant rise possibility in the coming months. This difference between retail attention and whale accumulation often indicates a critical moment in the market where patient capital sets the basis for the next major bullish stage.
Technical details: Volatility drives price action
Ethereum (ETH) is currently trading at $3,629, showing signs of hesitation after a rebound of nearly $3,360 from the recent local low. This price is struggling to regain the 100th SMA (Green Line) that served as a dynamic resistance in a recent session for $3,689. The $3,641 50th term SMA (blue line) offers some support, but the overall momentum remains vulnerable, forming a lower high since rejection at a $3,860 resistance level.
During recent attempts at recovery, the amount has declined significantly, indicating no strong bullish convictions. This low capacity bounce suggests buyers are cautious, and sellers may take advantage of all their weaknesses to push ETH low.
If Ethereum fails to regain the $3,700 zone beyond $3,689, the Bearish scenario could be strengthened and it could reconsider its support area with a price target of $3,360. The advantage is that a clean breakout of over $3,700 over $3,700 could set another stage of testing for a $3,860 resistance.
Dall-E special images, TradingView chart
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