Ethereum Whales Increase Accumulation During Sharp Market Pullback
Last week, Ethereum saw a lot of selling pressure, and it quickly lost more than 40% of its market value. During this drop, whales and institutions took out 186,168 ETH, which is about $280 million. These big withdrawals happened on major exchanges like Binance, Kraken, and Gate.
These kinds of movements usually mean that assets are building up as they move from exchanges to private wallets. People often guess about insider confidence or long-term positioning based on how whales act. This pattern has brought back up the question of whether current prices are a good time to buy.
Exchange Reserve Declines Strengthen Accumulation Narrative
CryptoQuant’s on-chain data showed that Ethereum exchange reserves have dropped sharply in the past few days. Around 219,203 ETH left centralized exchanges in the first 24 hours. This backs up the idea that big holders are lowering the supply of liquid.
Historically, when exchange reserves fall, it means that prices are likely to go up again. Less supply on exchanges can make it harder to sell during rebounds. Even though on-chain metrics are helpful, it’s still unclear when market reversals will happen.
Ethereum Price Tries to Bounce Back Despite Low Trading Volume
Ethereum was worth about $2,108 after going up about 4.5% in 1 day. Even though prices went up, trading volume fell by 35% to $34.35 billion. Lower volume means that traders in the broader market are being careful.
For a recovery to last, the volume of trades usually needs to go up to show that buyers are sure. If there isn’t a lot of volume confirmation, price increases could just be short-lived relief rallies. So, even though there are signs that whales are buying up a lot of stock, people in the market are still hesitant.
Recommended Article: Ethereum Transactions Hit Record as Staking Exit Queue Clear
Key Technical Levels Define Short Term Ethereum Direction
Ethereum is trying to get back to the important $2,180 support level that it lost earlier this month. After the market as a whole fell, this area is now a key resistance point. A confirmed daily close above this level could mean that the market is about to turn around.
If it doesn’t get back to $2,180, selling pressure may start again toward lower supports. If the stock price drops, analysts say the next big support level is $1,550. The way the price reacts near resistance will probably affect short-term sentiment.
Momentum Indicators Show Strength After Oversold Conditions
The Average Directional Index hit 49, which means that the trend is moving strongly right now. Readings over 25 usually mean that the direction is strong. This means that Ethereum’s recent move has a lot of power.
At the same time, the Money Flow Index shot up from 11 to over 33. The MFI is going up because there is more buying pressure after the market has been deeply oversold. All of these signs point to an increase in technical momentum.
Derivatives Data Reveals Bullish Short Term Trader Sentiment
Liquidation maps show that there is a lot of leverage on both sides of Ethereum’s price range. Long positions worth about $247 million are grouped around $2,060. There are short positions worth about $189 million near $2,135.
This imbalance makes it look like traders are leaning slightly bullish in the short term. If prices move through these zones, it could cause liquidations, which would make volatility worse. The positioning of derivatives makes Ethereum’s future even more uncertain.
Final Outlook Balances Accumulation Optimism With Caution
The reserves of Ethereum exchanges keep going down, which shows that whales and institutions are very interested. Historically, accumulation during times of weakness has often come before long-term recovery phases. But confirmation still depends on the price getting back to important resistance levels.
There are still risks to the downside as long as there isn’t a clear break above $2,180. Investors should think about how better on-chain data stacks up against low volume and resistance pressure. The next move Ethereum makes will probably depend on how stable the rest of the market is.
