Ethereum is experiencing heightened volatility after surging to a local high of $3,940 before retracing to a local low near $3,360. The price has struggled to reclaim key resistance levels, amplifying concerns among traders that a deeper correction could be on the horizon. Market sentiment remains cautious as bullish momentum fades and Ethereum consolidates in a tightening range. Analysts warn that failure to regain critical levels soon could trigger further downside pressure in the short term.
However, despite the current price weakness, whale activity remains robust. According to Arkham Intelligence, a leading blockchain analytics platform that deanonymizes the people and companies behind blockchain wallets and transactions, a new large player is aggressively accumulating ETH. This address has added significant amounts of Ethereum over the past few days, continuing the recent trend of whale accumulation seen throughout the latest correction phase.
This accumulation stands out as a clear indicator of Traditional Finance (TradFi) capital flowing into Ethereum, even as broader market sentiment remains cautious. The timing of these buys is especially notable, as Bitcoin is currently facing cooling momentum after an aggressive bull run, while most altcoins are still struggling below critical resistance levels. Despite this, large investors are actively positioning themselves in Ethereum, suggesting they view the current price range as an opportunity to build strategic holdings.
The ongoing whale accumulation trend reflects a broader market belief that Ethereum’s fundamentals remain solid. Institutional investors seem to be focusing on long-term drivers such as Ethereum’s leading role in DeFi, stablecoin infrastructure, and RWA tokenization, which are all gaining traction among traditional financial entities.
While short-term price action may continue to see volatility, the aggressive accumulation from addresses like 0x86F indicates that temporary corrections do not deter larger players. Instead, they are preparing for what they anticipate to be significant upside potential in the coming months. This divergence between retail caution and whale accumulation often signals pivotal moments in the market, where patient capital sets the foundation for the next major bullish phase.
Ethereum (ETH) is currently trading at $3,629, showing signs of hesitation after its recent rebound from a local low near $3,360. The price is struggling to reclaim the 100-period SMA (green line) at $3,689, which has acted as dynamic resistance in recent sessions. The 50-period SMA (blue line) at $3,641 is providing some support, but overall momentum remains fragile, with lower highs forming since the rejection at the $3,860 resistance level.
Volume has notably decreased during the recent recovery attempt, indicating a lack of strong bullish conviction. This low-volume bounce suggests that buyers are cautious, and sellers may take advantage of any weakness to push ETH lower.
If Ethereum fails to break above $3,689 and reclaim the $3,700 zone, the bearish scenario could intensify, with price targets potentially revisiting the $3,360 support area. On the upside, a clean breakout above $3,700 with strong volume could set the stage for another test of the $3,860 resistance.
Featured image from Dall-E, chart from TradingView
