Ethereum (ETH) has had a turbulent week, with the value dipping to tag the critical $3,000 support level before recovering to current levels around $3,200. This sharp drop sparked fear amongst investors, as doubts about Ethereum’s performance for this cycle intensified. Many began questioning whether ETH could regain its momentum amid the broader market’s volatility.
Nevertheless, key on-chain metrics suggest that not all investors share this skepticism. Data reveals that major players are still accumulating ETH despite recent price motion. Prior to now 24 hours alone, 13 latest mega whales—wallets holding over 10,000 ETH each—have joined the network. This signals strong confidence amongst high-net-worth investors and institutional players, who appear to see the present price levels as a chance.
This significant accumulation activity suggests that big players are positioning themselves for a possible breakout. While smaller retail investors could also be hesitant, the moves of those whales could indicate optimism for Ethereum’s long-term prospects. As ETH stabilizes across the $3,200 level, the market will likely be closely watching whether this accumulation trend results in renewed bullish momentum and a stronger recovery within the weeks ahead. The approaching days may very well be pivotal for Ethereum’s trajectory on this market cycle.
Ethereum Enters A Recovery Phase
Ethereum has faced significant selling pressure since late December, shedding over 25% in value during this era. The prolonged downturn has tested investor confidence, yet recent price motion suggests that the bearish phase could also be nearing its conclusion. Analysts at the moment are optimistic a few reversal and potential recovery, with Ethereum showing signs of regaining its footing.
Top crypto analyst Ali Martinez has highlighted compelling data supporting this bullish outlook. In line with his evaluation shared on X, 13 mega whales—wallets holding over 10,000 ETH each—have joined the Ethereum network within the last 24 hours.
This surge in large-scale accumulation suggests that big players are profiting from current price levels, positioning themselves for an anticipated recovery. Significant whale activity often serves as a powerful indicator of confidence amongst institutional and high-net-worth investors, who typically operate with a long-term perspective.
At its current levels, Ethereum appears to be constructing a powerful base of support. This accumulation by mega whales aligns with the broader market sentiment that ETH is poised for a bullish phase once the selling pressure subsides. If ETH can hold its ground and reclaim key resistance levels, the following upward move could mark the start of a powerful recovery and sustained bullish momentum within the months ahead.
ETH Testing Crucial Liquidity
Ethereum is trading at $3,190 after finding strong support on the $3,000 mark, which aligns with the 200-day moving average. This key level has acted as a critical long-term indicator of strength, and ETH’s ability to carry above it suggests the potential for a trend reversal. After weeks of downward pressure, the present price motion indicates that ETH might finally be able to shift from its bearish trajectory.
For a whole confirmation of a bullish reversal, Ethereum must break above and hold the $3,500 level, a big resistance zone that has capped its upward movement in recent weeks. Reclaiming this level would likely restore investor confidence and signal the beginning of a latest uptrend. Nevertheless, market conditions remain volatile, driven by speculation and broader macroeconomic uncertainties, which can delay ETH’s breakout.
Despite the challenges, Ethereum’s recovery above the 200-day moving average is a positive sign for the long-term outlook. Investors are cautiously optimistic as ETH stabilizes at current levels. Patience could also be required, however the recent price motion suggests ETH is setting the stage for a possible rally once it overcomes key resistance and the broader market finds direction.
Featured image from Dall-E, chart from TradingView