Ethereum Whale Purchases Surge Following $2.8K Support Break

Ethereum Whale Purchases Surge Following $2.8K Support Break – What's Next?

Ethereum recently dropped below the $2.8K support level, hitting a low of $2,787 before buyers intervened to defend this crucial threshold. At the time of writing, ETH is trading at $2,863, reflecting a 2.63% decline on the daily charts, marking a week of bearish trends. Despite the altcoin's ongoing struggles, large investors, including whales and institutions, are taking the opportunity to buy during this dip.

Key Takeaways

Ethereum's price dropped below $2.8K, reaching a low of $2,787 before buyers stepped in.
A new wallet acquired 61,000 ETH worth $171.15 million from Binance.
A whale purchased an additional 20,000 ETH for $56.13 million, totaling 70,013 ETH over five days.
While some whales are accumulating, panic selling is also occurring among others.
Bearish momentum persists despite whale accumulation activities.

Ethereum [ETH]

Whale and Institutional Buying

Following Ethereum’s dip below the $2.8K mark, a buying opportunity emerged for investors, particularly large entities. According to Onchain Lens, a newly created wallet executed a purchase of 61,000 ETH for $171.15 million from Binance.

Ethereum whale Source: Onchain Lens

Additionally, Lookonchain reported an OTC Whale’s purchase of another 20,000 ETH, valued at $56.13 million. Over the past five days, this whale has accumulated a total of 70,013 ETH, amounting to $203.6 million, bringing its total holdings to 100,130 ETH worth about $283.79 million.

WLFI to Ethereum Source: Lookonchain

Furthermore, World Liberty Financial (WLFI) shifted some of its Bitcoin holdings into Ethereum as prices have become more attractive. The WLFI team swapped 93.77 Wrapped Bitcoin (WBTC), valued at $8.08 million, for 2,868 ETH. Overall, these whales now hold a total of 83,868 ETH worth $235.41 million. This kind of accumulation during a prolonged market downturn indicates confidence among these market players, suggesting they view current conditions as temporary.

Ethereum spot netflow Source: CoinGlass

Moreover, exchange activities reflect this accumulation trend. According to CoinGlass, Ethereum has experienced negative net flow for three consecutive days, with $2.69 billion worth of ETH exiting exchanges. Currently, the net flow stands at -$68.9 million, a notable decline from the previous day’s -$224 million. This sustained negative net flow indicates increased selling pressure, a clear sign of aggressive accumulation in the spot market.

Active Panic Selling

While some investors are using current prices to buy ETH, others are selling in panic as prices remain stuck below $3K. Lookonchain reported that a whale recently sold 5,500 ETH for $16.02 million at $2,912. Just days earlier, this whale had purchased 2,000 ETH for $5.97 million at $2,984.

Ethereum whale sale Source: Lookonchain

Historically, this whale has tended to buy at elevated prices and then sell at lower prices, incurring significant losses. In addition, a long-dormant whale returned after being inactive for nine years, depositing 50,000 ETH worth $145.25 million, according to Lookonchain.

When whales sell during a downtrend, it indicates fear and a lack of faith in the market, causing them to liquidate their positions to prevent further losses. This behavior contributes to ongoing market strain and downward price pressure.

Continued Bearish Momentum

Despite strong accumulation from whales, Ethereum still faces significant downward pressure, and whale demand hasn’t been sufficient to reverse this trend. The current bearish momentum remains high, with the altcoin's MACD dropping to -51, deeper into the bearish zone, indicating seller dominance.

ETH MACD & RVGI Source: TradingView

Additionally, the Relative Vigor Index (RVGI) has fallen into negative territory, currently at -0.3, reinforcing the strength of the downside trend. These market dynamics suggest that Ethereum may drop below $2.8K again, potentially heading toward $2,633. However, with ongoing whale accumulation, there is a chance that sustained interest could help lift ETH towards $3,070.

Conclusion

The current market activity around Ethereum highlights a complex interplay of buying and selling decisions among whales and retail investors, which could shape ETH's trajectory in the coming weeks.