Ethereum broke through a key demand level and fell to the $2,660 zone, its lowest price in months. This decline shows that the bulls are clearly losing control as fear spreads through the market. Traders who once expected a strong recovery are now reevaluating their positions, and sentiment across social and on-chain metrics is quickly turning into panic. But even in the midst of this capitulation-driven environment, early signs of potential resilience are beginning to emerge.
According to Lookonchain, one of the most-watched Ethereum whales, known as “66kETTHBorrow,” is actively ramping up its strategy. First, he accumulated 57,725 ETH worth $162.77 million. This move caught the attention of analysts at the time of the steepest decline. Just a few hours later, he added another 7,837 ETH ($21.9 million) to his position, demonstrating unwavering faith despite the market turmoil.
This aggressive accumulation stands in stark contrast to the widespread fear gripping Ethereum holders. While retail traders are capitulating and leveraged positions are being unwound, strategic buyers appear to be stepping in. For many analysts, this type of behavior has historically signaled the formation of an early local bottom.
Whale accumulation signals guilty verdict amid Ethereum bearish decline
According to the latest data from Lookonchain, the whale known as “66kETHBorrow” has currently accumulated a staggering amount of 440,558 ETH, worth approximately $1.23 billion. This makes him one of the largest individual Ethereum holders who are actively hoarding during the current downturn, and the size of his position sends a strong signal to the market.
While Ethereum’s price continues to struggle below key support levels, this whale’s behavior stands in sharp contrast to the fear-driven selling that dominates retail traders. Instead of reducing his exposure, he is actively adding to it, even though the ETH chart shows a steady downward trend and sentiment is extremely bearish. Historically, this type of cash richness during periods of panic has often coincided with the early stages of a trend reversal or the formation of a local bottom.
The reason is simple. That’s because large companies typically operate on long-term conviction rather than short-term volatility. Their willingness to increase exposure at a time when most investors are capitulating is often interpreted as a strong vote of confidence in Ethereum’s fundamentals and future valuation.
ETH falls below key levels
Ethereum broke through a major support level and fell towards the $2,660 zone, conclusively showing market weakness. The chart shows a clear downtrend forming over the past few weeks, with ETH consistently lowering highs and lowering lows as selling pressure accelerates. The 50-day moving average and 100-day moving average are below the 200-day moving average, forming a bearish alignment indicating long-term downside momentum.
The spike in volume during the decline highlights increasing liquidation pressure and confirms that the decline is being driven by active sellers rather than passive flows. Ethereum attempted small rallies throughout November, but each pullback was rejected by descending resistance, showing a clear lack of bullish conviction.
At the moment, the price is struggling to maintain the $2,700 area. This is an important psychological level that previously served as a support during previous adjustments.
However, the silver lining is the emergence of notable buying interest from major players. Despite the bearish structure, the volume pattern shows occasional accumulation with deeper declines, suggesting an early attempt to form a local bottom. Still, ETH remains vulnerable unless it regains its 50-day moving average and stabilizes above $3,000.
Featured image from ChatGPT, chart from TradingView.com
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