Українська
Русский
English
Whales bought $1.2 billion worth of Ethereum amid possible bear capitulation
Ethereum (ETH) is trying to break out of a bearish trend. The cryptocurrency is trading near $3,016, rising by about 2.3% over the past 24 hours. The coin is less than 2% below a key level that could reverse the trend.
The market weakened at the end of the year. At the same time, Ethereum has the strength to challenge the bears. We explain how realistic such a scenario is and what is needed for ETH to grow.
Bearish head and shoulders under pressure
On the daily chart, ETH is forming a “head and shoulders” pattern — a bearish structure that usually plays out if the price breaks the neckline. In this case, the neckline is located around $2,809. A confirmed breakdown could lead to a 20% drop.
Bearish risk for ETH: TradingView
The decline may not be easy. On the cost heatmap, a huge concentration of supply is located between $2,804 and $2,823, where about 3.6 million ETH are held. This is where a large group of investors last established positions. When the price returns to this zone, these market participants usually defend it. Because of this concentration, the risk of an Ethereum breakdown still exists but appears less likely.
Strong neckline support: Glassnode
Simply put, bearish sentiment exists, but bears face many obstacles.
Whales are betting on ETH
Whales, excluding exchanges, increased their holdings from 100.65 million ETH on December 28 to 101.05 million ETH. This is equivalent to buying about 400,000 ETH. At the current price, that is roughly $1.2 billion purchased in less than 24 hours.
Whales are buying ETH: Santiment
Meanwhile, ETH is reclaiming ground near the right shoulder of the pattern. Large holders are buying amid breakdown risks. At the same time, the number of spent coins from the 365-day to 2-year age group collapsed from 45,846 ETH on December 27 to 1,076 ETH. This is 98% less than older coins. The spent coins metric tracks tokens that return to circulation after being held for a long time.
Long-term ETH holders are moving fewer coins: Santiment
The slowdown in movement means that long-term holders are no longer selling at the same pace. This reduces downward pressure on price and allows whales to fuel recovery attempts. As large investors buy and long-term holders step back from selling, supply dynamics now favor growth.
Ethereum is close to beating the bears
ETH is trading near $3,016. The first important level is $3,069, which is less than 2% above current prices. A daily close above $3,069 would break short-term bearish control.
Above that level, at $3,449, lies the bearish pattern invalidation zone. This level represents the head peak of the head and shoulders pattern. A daily close above $3,449 invalidates the bearish structure and hands control to buyers.
Ethereum price analysis: TradingView
Below $2,809 remains the neckline, and losing it opens the door to a 20% downside move. Such a scenario could initially push the price below $2,623, invalidating the bullish case.
At the time of writing, ETH is fluctuating between these two outcomes, but momentum and market participant behavior favor the bulls. The latter will prevail if the $3,069 level is broken.
See also: "The 13% barrier is holding back Bitcoin’s price recovery"
