Whales Buy 1.10M Ethereum—What’s Their Plan?
Ethereum Price Down 15%—Is More Pain Coming?
Ethereum (ETH) continues to struggle, failing to reclaim key support levels following setbacks in the Pectra testnet upgrade and a significant spike in whale accumulation.
Key Highlights
Price Decline: Ethereum dropped 3% on Friday, extending a 15% loss from Monday. ETH has struggled to reclaim the critical $2,200 level, which marks the lower boundary of a key rectangular channel maintained since August 2024.
Testnet Failure: The decline is partly due to the failure of Ethereum's Holesky testnet to finalize following issues with the Pectra upgrade, raising concerns about network stability.
Futures Liquidations:
Ethereum witnessed $82.26 million in futures liquidations over the past 24 hours.
Liquidations included $55.28 million in long positions and $26.98 million in short positions, indicating heightened market volatility.
Technical Indicators:
The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) remain below neutral, signaling dominant bearish momentum.
A failure to break above $2,200 could push ETH towards the next major support level at $1,500.
However, a daily close above $2,850 would invalidate this bearish scenario.
Read: Ethereum Price Prediction 2025, 2026 - 2030 for more insights
Whale Activity: Accumulation or Anticipation?
Significant Purchases: Whale investors acquired 1.10 million ETH, representing approximately 0.92% of Ethereum's circulating supply (120 million ETH).
Accumulation Trend: In January 2025, large holders purchased over 330,000 ETH in a week, signaling potential market anticipation.
Strategic Positioning: This quiet accumulation amid bearish price action could indicate that whales are preparing for a market shift.
Also Read: Hamster Kombat Price Prediction 2025-2030
MVRV Ratio Signals Potential Recovery
MVRV Drop: Ethereum’s Market Value to Realized Value (MVRV) ratio fell below 1, showing that the average investor is at a loss.
Historical Context: During previous bull seasons, ETH often rallied when the MVRV ratio dipped below 1, suggesting a possible recovery ahead.
External Factors Boosting Sentiment
Trump's Crypto Reserve: On March 2nd, former President Donald Trump announced a U.S. strategic crypto reserve, expressing his "love" for Ethereum, boosting market sentiment.
White House Crypto Summit: The upcoming summit on March 7 has raised investor expectations of favorable regulatory developments.
Ethereum's Market Position
Stablecoin Dominance: Ethereum continues to dominate the stablecoin market, holding 56% of the total stablecoin value, reinforcing its status as a critical asset in the crypto ecosystem.
While Ethereum faces bearish pressures and technical hurdles, the increase in whale accumulation and external market catalysts suggest a potential recovery. Investors should watch for a break above $2,200 or a potential retest of the $1,500 support.