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Ethereum has seen a sharp decline, falling more than 13% since Monday, raising concerns among investors who expected a breakout. This sudden pullback, which took ETH’s price as low as $2,380 on Friday, has injected a sense of unease into the market, leaving many questioning the strength of its recent rally. However, on-chain data from Santiment reveals an interesting development, as whale activity in Ethereum rose to a six-week high as the price fell.
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This spike in large transactions indicates a potential buildup by whales, a pattern that is often seen as a bullish signal when it occurs near key support levels. Historically, large purchases by whales during recessions indicate confidence in a future recovery, as these large holders tend to seek out undervalued assets with high potential.
The next few days will be crucial for Ethereum as investors wait for signs of stability or further decline. A strong hold above recent lows could pave the way for a recovery, while failure to hold support could reinforce bearish sentiment. For now, all eyes remain on Ethereum’s price movements, as well as the behavior of whales, which could provide insight into Ethereum’s near-term direction.
Is Ethereum poised to rise?
Despite the recent decline in Ethereum prices, sentiment among investors and analysts remains bullish in the near future. according to Fundamental data from Santiment cryptocurrency analysis platformEthereum whale activity reached a six-week high as the price fell to $2,380 on Friday.
Historically, such a rise in activity by whales – large stakeholders with significant capital – indicates accumulation. When whales start accumulating, it is often an indication of renewed confidence, indicating that these major players see long-term value at current prices.
While an immediate price rise is not guaranteed, this pattern is encouraging. Key accumulation phases typically occur in periods of price weakness or extended consolidation, laying the groundwork for a potential upward movement.
Ethereum price action has been lackluster in recent months, with Ethereum struggling to breakout despite occasional bullish sentiment. Some analysts suggest that this may be due to heavy accumulation dynamics driven by institutional investors or “smart money” who gradually increase their holdings during periods of low momentum.
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With the increase in whale activity, this is a potential sign that Ethereum is preparing for a stronger move once the accumulation is complete. With the support of high-value stakeholders, the price of Ethereum may eventually reflect this renewed confidence.
Currently, investors are closely monitoring consolidation near key support levels, which could provide the basis for a breakout. If the whale build-up continues in the coming weeks, it could drive upward momentum, validating the long-term bullish outlook shared by many analysts and investors.
Ethereum price movement
Ethereum is currently trading at $2,466 after pulling back from the $2,550 level, indicating that the bullish momentum is difficult to maintain. This bounce has brought ETH closer to recent local lows but still within a sideways pattern, keeping a slightly bullish outlook as it hovers above key support areas.
For Ethereum bulls to regain control, a break above the $2,550 level is crucial. A break of this level would signal renewed strength and allow ETH to target the 200-day Exponential Moving Average (EMA) at $2,783. Achieving this would represent a new domestic high, which could reinforce bullish sentiment among investors.
However, if Ethereum price fails to rise in the coming days, the likelihood of a prolonged consolidation or even a deeper correction will increase. Such a scenario would likely result in additional downward pressure, with ETH potentially revisiting previous support levels as traders reassess the market direction.
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Currently, Ethereum’s price action is finely balanced, with the $2,550 level and the 200-day moving average representing crucial milestones for bulls aiming to maintain the uptrend in the near term.
Featured image by Dall-E, chart from TradingView