Ethereum ($ETH) This week, it briefly fell below the $2,000 threshold for the first time since March 29th. The price has since stabilized and is currently trading around $2,002, still almost 60% below August’s high of nearly $5,000.
However, the data suggest that $ETHThe biggest whales are coming together again
$ETH Whales strengthen their grip on supply
Wallets holding at least 100,000 Ethereum now own a total of 17.41 million Ethereum $ETHThis was the highest level in nine weeks. These holdings accounted for 22.03% of Ethereum’s total supply, hitting a 10-week high.
The latest findings come after Santiment reported that it had been flooded with “buy on the buy” calls from retail traders as the asset fell below $2,000. According to the analytics firm, crypto markets typically react to sharp declines in two ways. Either fear takes over and traders start exiting assets, or traders see falling prices as buying opportunities and become more optimistic.
The second reaction seemed to dominate the surrounding emotions. $ETH Despite the recent weakness, this essentially means retail traders are becoming more confident that this decline represents a discounted entry point rather than a warning sign of further downside.
But Santiment cautioned that excessive optimism in the crowd is historically a bearish signal, as retail traders often misjudge the direction of the market during volatile times. The firm further added that stronger buying opportunities could emerge if the current FOMO fades and sentiment shifts to panic, which the firm described as a more typical situation seen near market bottoms.
Downside price target
Bearish technical signals have not completely disappeared from the market. Crypto analyst Ali Martinez said downward pressure could accelerate if Ethereum falls below the $1,850 weekly closing price level.
Based on the broader channel structure, Martinez identified two potential downside targets following the rejection. The first target is around $1,560, which he described as interim structural support, while the second target is around $1,070, which is the lower end of the crypto asset’s multi-year range.
