The Ethereum price is plunging. The second-largest crypto has dropped to $1,658, recording a loss of over 6.62% in the past 24 hours. The recent breakdown below the crucial support has strengthened the bearish outlook, raising the possibility of a deeper correction. Moreover, the volume has also decreased by 15%, hinting towards reduced trader participation. Amid the bearish speculation, ETH whale activity has raised eyebrows, signalling renewed confidence despite the ongoing decline.
The contrasting signals have created a critical turning point for Ethereum. While technical indicators point to the risk of further downside, renewed whale accumulation could indicate that long-term investors are viewing the recent correction as an opportunity rather than a reason to exit.
As ETH approaches a major support zone, the key question remains: Can whale accumulation help spark a recovery, or will bearish momentum continue to dominate Ethereum’s price action?
Dormant Whale Returns With Aggressive ETH Accumulation
While Ethereum’s price continues to trend lower, on-chain activity suggests at least one large investor is positioning for a different outcome. Blockchain data shows a dormant whale wallet became active after three years of inactivity and immediately launched an aggressive accumulation strategy. The whale deposited 20,000 ETH into Aave V3, borrowed $30 million in USDT, and used the funds to acquire an additional 17,826 ETH at an average price of roughly $1,683.
Following the purchases, the wallet’s holdings have climbed to 56,380 ETH, valued at more than $94 million at current prices. More importantly, the leveraged accumulation strategy indicates the investor is not merely holding ETH but actively increasing exposure through borrowed capital, reflecting strong confidence in Ethereum’s long-term prospects despite the ongoing market downturn.
ETH Price Risks Further Downside Despite Whale Accumulation
Despite the renewed whale activity, Ethereum’s technical structure remains under pressure. The weekly chart shows ETH breaking below the long-standing support zone around $1,700, placing the asset at its lowest levels of the year. The breakdown is particularly significant because it comes after ETH lost its 200-week moving average near $2,470.
With the price now trading well below this benchmark, sellers continue to maintain control of the higher-timeframe trend.
The weekly MACD is positioned in bearish territory with no clear signs of a reversal, suggesting downside pressure has yet to fully subside. For now, the immediate support lies around $1,527. A successful defense of this level could allow ETH to stabilize and potentially benefit from the growing whale accumulation narrative. However, if bears force a breakdown below this zone, the next major support sits near $1,100-$1,200, opening the door to a deeper correction before a meaningful recovery can begin.
As a result, Ethereum finds itself at a critical crossroads where bullish on-chain signals are clashing with a weakening technical structure.
What’s Next for the ETH Price Rally?
Ethereum remains trapped between two opposing forces. On one side, the technical structure continues to deteriorate as ETH trades below key support levels and approaches a crucial demand zone near $1,527. On the other, a dormant whale’s aggressive accumulation suggests that some large investors are viewing the recent decline as a buying opportunity rather than the start of a prolonged downtrend.
The next few weeks could prove decisive. Holding above $1,527 may allow ETH to establish a local bottom and attempt a recovery toward the $2,000-$2,200 region. However, a breakdown below this support could accelerate selling pressure and expose the next major demand zone around $1,100-$1,200.