Ethereum (ETH) traded lower on Thursday and remained under pressure into Wednesday, following a turbulent week marked by a broad cryptocurrency market downturn.
Notably, over the past week, the crypto asset has declined nearly 13%, reflecting a wave of investor caution and renewed fears that the recent rally may be running out of steam.
However, despite this weakness, large investors appear to be making moves as the price consolidates following a brief flash drop over a few weeks.
According to blockchain analytics firm Lookonchain, on Monday, a wallet associated with Tom Lee’s Fundstrat Bitmine made a bold move during the market drop, acquiring 20,000 ETH, worth approximately $41.98 million.
Notably, such large-scale accumulation during periods of heavy selling often draws the attention of traders, as it can signal confidence from deep-pocketed investors betting on a price rebound.
That said, while some interpret this purchase as a show of conviction in Ethereum’s long-term value, others caution that even whales can misjudge timing, particularly in a market that remains sentiment-driven and highly correlated to macroeconomic uncertainty. Nevertheless, amid the price slump, market analysts are divided about whether ETH’s recent dip could mark a turning point.
According to popular analyst Benjamin Cowen, ETH appears to have found a “home” near the $2,000 level and could consolidate there in the near term. However, the analyst warned that ETH may still see one final dip toward the $1,500 area later this year, a move he described as a potential last shakeout before a broader bullish cycle and a push toward a new all-time high.
Elsewhere, Ali Charts noted that the Ethereum price has fallen below a key historical metric, the 0.80 Pricing Band, a zone that previously aligned with market bottoms.
“The last three times Ethereum dipped below the 0.80 Pricing Band, it marked a market bottom. With the price dropping below $1,959, that signal is flashing again,” he noted.
Moreover, if historical patterns repeat, Ethereum’s current zone could represent a potential accumulation range for long-term investors.
However, others remain wary, emphasizing that technical signals must align with broader sentiment and liquidity trends before confirming a sustainable recovery.
Analyst Ted warned that Ethereum’s failure to sustain levels above $2,100 raises the risk of further decline.
“ETH failed to hold above the $2,100 level. Now, Ethereum needs to hold the $2,000 level, otherwise the entire pump could be retraced,” he stated.
Additionally, analyst Brave New Coin highlighted that the $2,100 level has repeatedly acted as a pivotal threshold influencing short-term trend direction.
“Ethereum is hovering near a pivotal $2,100 level that has repeatedly dictated trend direction, leaving traders watching closely to see whether this zone sparks recovery or another rejection,” he said.
At press time, ETH was trading at $1,991, reflecting a 4.01% decline in the past 72 hours.
Source: https://zycrypto.com/whale-accumulates-42-million-in-ethereum-amid-price-slump-is-the-bottom-in/
