Ethereum Whale Buys $200M ETH as Price Slides

This article was first published on The Bit Journal.

Ethereum price extended its decline in the recent sessions while crypto markets were under pressure. Short-term traders greeted the dip with caution. But, on-chain data showed a massive buying interest from a well-established whale.

This contrast has been defining the market’s conversation about near-term risk and long-term confidence. Data on the blockchain indicates that one major Ethereum holder kept buying ETH even during the dip. The transactions were executed in over-the-counter deals.

Whale Strategy Highlights Long-Term Confidence

This approach reduced market impact. It also steered clear of setting off automated trading systems. At a time when Ethereum price crashed through critical levels, this was notable.

Ethereum price has been fighting to keep its recent gains over the last week. Technical indicators weakened. Selling pressure remained steady. Despite this, whale accumulation increased.

That could mean big investors view current levels as a good deal at which to buy. And the spread between retail caution and whale confidence has grown.

Whale Accumulation Intensifies

A whale wallet identified as 0xFB7 recently bought 20,000 ETH. The purchase was valued at about $56 million. This was not an isolated move. Over the last five days, the same wallet accumulated more than 70,000 ETH. 

Also Read: Vitalik’s Ethereum 2026 Vision Centers on Core Protocol Values

The total value exceeded $200 million. Such consistent buying during weakness often signals long-term conviction rather than short-term speculation.

Strategic Use of OTC Transactions

The whale relied on OTC deals instead of spot market orders. This strategy limits slippage. It also keeps prices stable during large purchases. 

For the Ethereum price, this meant reduced immediate volatility. OTC buying often reflects a calculated and patient approach. It is commonly used by institutions and large funds.

Impact on Market Sentiment

Whale behavior can influence sentiment across the market. Many traders track large wallets for signals. When accumulation happens during a downturn, it can ease panic. It may also suggest confidence in future recovery. 

While whale activity does not guarantee a rebound, it often reflects informed positioning. In this case, it supports the view that the Ethereum price may be near a value zone.

Technical Structure Remains Weak

From a technical perspective, the Ethereum price remains fragile. On the four-hour chart, ETH has fallen below the 50-period EMA. 

Price is now testing the lower boundary of a rising channel formed in late December. Recent candles show long lower wicks. This points to dip-buying interest. However, follow-through remains limited.

Resistance Levels Limit Upside

The broader trend is capped by a descending trendline from the $3,480 high. ETH failed to hold above $3,310. That area has turned into firm resistance. 

As long as the Ethereum price stays below $3,050, upside attempts may struggle. Another resistance level sits near $3,182. A break above these zones is needed to shift momentum.

Support Zones Under Watch

Support remains concentrated around $2,810. Below that, $2,717 is the next key level. These areas previously attracted strong demand. 

A clean break below channel support could increase downside risk. For now, buyers are defending these zones. This keeps the Ethereum price in a tight range.

Momentum Signals Caution

Momentum indicators reflect ongoing weakness. The Relative Strength Index is near 40. This shows weak momentum but not oversold conditions. 

Selling pressure appears controlled. Yet it remains persistent. Without stronger buying, rallies may continue to fade. This keeps the Ethereum price vulnerable in the short term.

Conclusion

The Ethereum price appears to be under some technical pressure and consolidative/hesitant momentum. Short-term sentiment remains cautious. Yet aggressive whale buying suggests a different story. The big money seems bullish at these levels.

It is a long strategy by them to use OTC channels. Though continued volatility is likely, whale activity suggests that confidence in the broader potential of Ethereum as a digital asset has not been shaken.

Also Read: Ethereum Price Outlook: 3 Reasons Whale Execution Is Bullish

Appendix: Glossary of Key Terms

Whale: A term used to describe members of the investing community who have hold large cryptocurrency wallets.

OTC trade: A private trade in cryptocurrency made outside the public exchanges.

Market impact (slippage): The deviation of the expected trade price from that received in the final execution.

Technical indicators: Analytical tools that are used to analyze price trends and momentum.

RSI: The Relative Strength Index is a momentum indicator that gauges buying and selling pressure.

Support level: A specific price area that purchasing pressure has previously kept higher.

Resistance level: A price range where the selling pressure has caused fluctuations to stall.

Frequently Asked Questions Ethereum Price

1- Why is the Ethereum price falling now?

The Ethereum price is under pressure due to weak momentum, resistance levels, and broader market uncertainty.

2- What does whale accumulation mean for the market?

Whale accumulation often signals long-term confidence. It does not ensure a rebound but can support sentiment.

3- Why are OTC purchases important?

OTC purchases reduce price impact. They allow large buyers to accumulate without moving the market.

4- What levels are key for Ethereum?

Support lies near $2,810 and $2,717. Resistance stands at $3,050 and $3,182.

References

Coinomedia

FXLeaders

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