Ethereum is looking to stabilize after a prolonged slide that raised concerns about its ability to recover. ETH has struggled to generate upward momentum for most of this month.
But changes in investor behavior suggest things may be changing. Reducing selling pressure and aggressive whale accumulation are producing early signs of strength.
Ethereum whale shows its strength
Whale activity has been a major driver of Ethereum’s current market sentiment. Addresses holding between 1 million and 10 million ETH have accumulated approximately 460,000 ETH in the past four days. This funding, valued at over $1.6 billion, demonstrates the strong belief of large holders that Ethereum is positioned for recovery. Their actions often determine the direction of the broader market, and an accumulation of this scale signals new confidence.
This buying spree also highlights that whales view ETH’s discounted price as an opportunity rather than a warning. Large purchases made during market downturns often precede a recovery.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
Ethereum Whale Holdings. Source: Santiment
Beyond whale accumulation, Ethereum’s macro momentum shows further improvement. The consumption age index is declining, reflecting a noticeable slowdown in sales among long-term holders. This indicator tracks the movement of older coins, and smaller spikes suggest fewer long-term investors are dumping their holdings. This action is very important because historically, selling LTH amplifies market downturns.
Reducing movement between dormant coins creates more headroom for Ethereum. When LTH holds the supply instead of distributing it, selling pressure is alleviated and price movements are stabilized. Combined with whale accumulation, a more resilient foundation could be formed, allowing ETH to recover after favorable conditions return.
Ethereum consumption age. Source: Santiment
ETH price faces a downward trend
Ethereum price is at $3,540 at the time of writing and is trying to break out of the local resistance at $3,607. Although ETH is still in a month-long downtrend, this ceiling is the first significant level that needs to be regained before bullish momentum returns.
If the aforementioned factors continue to strengthen, Ethereum could clear $3,607 and move towards $3,802. Reaching this level could help ETH challenge the general downtrend and open the door to further profits.
ETH price analysis. Source: TradingView
However, if ETH fails to break out above $3,607, the altcoin could once again fall towards the $3,287 support level. Losing this floor could cause the price to fall further towards $3,131, invalidating the newly emerged bullish outlook.
The article Ethereum Whale Gains $1.6 Billion in ETH Due to Dropping Sales was first published on BeInCrypto.
