Ethereum is trying to regain stability after a sharp selloff on Tuesday that sent the price below $3,100. This decline triggered widespread liquidations across crypto markets, with ETH briefly touching multi-week lows before finding support. As of today, the bulls are attempting to reclaim the $3,350 level. This level is a short-term resistance zone that could determine whether the asset heads for a broader recovery or faces further decline.
Related books
Despite the volatility, on-chain data reveals a different story beneath the surface. Large investors, often referred to as whales, continue to accumulate ETH, demonstrating long-term confidence in the network’s fundamentals. Their steady buying activity stands in stark contrast to the broader market’s fear-based behavior and suggests that major holders view the recent correction as a buying opportunity rather than a reversal.
Historically, when retail sentiment weakens, institutional investors and long-term capital move in, and whale accumulation during big pullbacks often precedes a strong rebound. The challenge now lies in whether Ethereum can maintain its momentum above the leading technology levels, especially as overall market confidence remains fragile. If buying pressure continues to build, ETH could find a foundation for a sustained recovery towards mid-November.
Whales accumulate ETH, suggesting impulsive forward movement
According to Lookonchain, Ethereum whales have accumulated a total of 394,682 ETH, worth approximately $1.37 billion, over the past three days. This massive buying wave occurred as the price consolidated below $3,400, indicating deep-pocketed investors are positioning themselves ahead of a potential market rebound.
Such aggressive accumulation often indicates smart money’s confidence in future upside potential. Historically, whales buying during periods of widespread fear and weak price movements suggests that they are anticipating impulsive moments, i.e. sharp moves triggered by renewed liquidity and a recovery in market sentiment. The scale and speed of this accumulation supports the idea that these companies expect Ethereum to outperform once selling pressure eases.
This trend is also consistent with broader market movements seen after large liquidations, where institutional investors tend to absorb supply from eliminated traders. If ETH breaks above the key support near $3,100, a combination of whale accumulation, improving on-chain inflows, and lower leverage could act as the catalyst for a breakout towards the $3,600-$3,800 range.
Related books
ETH gains support at the 200-day MA
Ethereum’s daily chart shows the asset briefly finding relief after Tuesday’s sharp selloff that pushed the price below $3,100 for the first time in weeks. This drop caused ETH to drop to a level that tested the 200-day moving average (red line). This is an important long-term dynamic support that historically acts as a springboard during correction phases.
Ethereum is currently trading around $3,380 and is showing slight signs of a rebound. However, bulls face immediate resistance near the $3,500-$3,600 range, where the 50-day moving average (blue) and 100-day moving average (green) converge. The region has repeatedly rejected the uptrend since late October, which will set the tone for the short term.
Related books
A decisive break above these averages could shift momentum back in the bulls’ favor and open the door for a recovery towards $3,800. On the downside, failure to sustain above the 200-day moving average could trigger further declines towards the previous demand zone of $3,000 and even $2,850.
Featured image from ChatGPT, chart from TradingView.com
