Ethereum is currently testing vital demand levels following a significant pullback from its recent high of $4,790. This correction has brought ETH down to around the $4,200 mark, which bulls are now striving to uphold. Despite recent strong momentum, selling pressures are increasing, leading some analysts to caution that Ethereum may undergo a deeper correction before establishing a more stable footing.
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However, institutional accumulation is providing a robust counterbalance. According to data from Arkham Intelligence, two whale accounts have acquired nearly $200 million worth of Ethereum within the past 24 hours. These new entrants are part of a larger trend where institutional investors and major funds are aggressively adding ETH to their portfolios.
The scale of these acquisitions indicates a growing confidence in Ethereum’s long-term value, even though short-term volatility is challenging market sentiment. Such whale accumulation often suggests strategic positioning in anticipation of potential rallies, underscoring Ethereum’s foundational role in the wider crypto market.
Ethereum Whale Accumulation Signals Growing Institutional Confidence
Per Arkham, two new whale wallets have purchased a combined total of $192 million worth of Ethereum from Bitgo, catching the market’s attention. The wallets, 0xEC9A7e7D864bD598d0F0F00d8D397E83171c52De and 0x728e79933070e44273Eb23bD0aB937565f41777d, made these large purchases as part of a broader institutional accumulation trend. This timing has led to speculation from Arkham about whether these players possess insights that the retail market might overlook.
The emergence of Ethereum as a treasury reserve asset is rapidly taking shape. Similar to the wave of corporate Bitcoin adoption initiated by MicroStrategy, institutional players are increasingly willing to add both Bitcoin and Ethereum to their balance sheets. This trend indicates that global adoption is on the rise, with Ethereum being recognized not just as a backbone for smart contracts and DeFi but also as a valuable long-term store of wealth.
These recent whale purchases bolster the notion that institutional investment is firmly entrenched, even amidst short-term volatility in ETH. As exchange supplies continue to dwindle and OTC liquidity decreases, each major acquisition exerts additional pressure on the supply side, positioning ETH as structurally bullish for the future.
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Price Action Details: Testing Demand
Ethereum (ETH) is presently trading at $4,222, showing signs of stabilization after a sharp decline from the recent $4,790 high. On the 4-hour chart, ETH is trying to maintain its position above the green 100-day moving average (around $4,180), a critical support level that could influence short-term direction.
The rejection near $4,800 signaled a local peak, followed by persistent selling that drove ETH below the 50-day moving average (blue line). This hints at a loss of momentum in the near term, with bears attempting to gain the upper hand. Nonetheless, the present rebound from the 100-day MA suggests that bulls are still fighting to protect key support zones.
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Trading volume has surged during the downturn, indicating aggressive sales but also notable absorption from buyers. If ETH can maintain the $4,200–$4,180 range, a possible recovery towards $4,400–$4,500 may unfold in the upcoming sessions. Conversely, failing to uphold this level could lead to a deeper correction towards $3,950–$3,900, aligning with the 200-day MA (red line).
Featured image from Dall-E, chart from TradingView
