The accumulation of Ethereum whales suggests long-term optimism
Ethereum has been on a steep downtrend, losing more than 57% of its value since late December. Despite short attempts at recovery, ETH continues to fail to recover critical price levels, indicating further downside risk. Ethereum is currently below multi-year support levels. This has led to strong resistance and makes it even more difficult for the bull to regain momentum.
In addition to the negative outlook, macroeconomic uncertainty and the fear of trade wars continue to weigh both crypto and traditional markets, increasing risk-off sentiment among investors. With the US stock markets struggling, Ethereum is under pressure and setting the stage for a potentially deeper revision.
But not all the signs are bearish. Some analysts believe Ethereum could recover in the coming months, and data on the chain shows potential signs of accumulation. Crypto analyst Ali Martinez shared Santiment data and revealed that the whales have purchased over 420,000 Ethereum in the last five days.
Historically, large-scale whale accumulation has tended to be a strong, long-term bullish signal for Ethereum. Increased holdings by whales usually suggests increased confidence in ETH’s future price increases. In previous cycles, low-cost whale purchases often precede major gatherings as accumulation reduces the available supply in exchanges and increases purchasing pressure over time.
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For now, Ethereum must regain its critical level to see a trend reversal. As whales continue to accumulate, ETH may be set up for a long-term recovery, even if short-term price measures remain unstable.
ETH Bull fights to regain important levels
Ethereum is currently trading at $1,900 and faces continued resistance after days of struggle below $2,000. The weakness of the wider market and sales pressure have made it difficult for the bulls to regain momentum, and ETH has become even more vulnerable to the downside if the main levels are not recovered soon.
To confirm the recovery, the Bulls will need to push ETH over $2,000 and break through the key resistance of $2,250. Successful regeneration of these levels marks the beginning of a potential recovery phase, allowing Ethereum to build momentum for greater movements.
However, if ETH cannot recover these levels, sales pressures could be increased and prices could be driven towards a decline in demand zones. A break below current support is likely to send ETH into the $1,700 range, with a further decline to $1,600 if bearish momentum continues.
With market sentiment still vulnerable, the next few days will be important in determining whether Ethereum can recover steadily or face deeper corrections. The Bulls need to step in immediately to prevent any further downsides and control price action.
Dall-E special images, TradingView chart
