- Ethereum whales acquired 201,000 ETH worth $855 million from exchanges and OTC, signaling confidence in a potential market reversal phase.
- The 4,000-4,200 support zone is still significant, and analysts believe there may be a rally base formed in case the level resists the bearish forecast.
- On-Balance Volume is moving on the upward trend, with no indication of a decrease, demonstrating the ongoing accumulation and increasing the perspectives of a faster Ethereum to the value of $5,000.
Ethereum is showing signs of resilience at critical levels while whale activity grows, suggesting traders may be underestimating the asset’s next move.
Price Weakness and the Fakeout Setup
Market watchers note that Ethereum’s recent dip pierced through support, creating what many saw as a breakdown. According to IncomeSharks on X, this move represents a classic fakeout. He explained that ETH has historically reversed sharply after trapping traders into bearish positions.
Currently, Ethereum is trading near the $4,000–$4,200 zone. This region has become a focal point for both buyers and sellers. While many expect a breakdown, the setup could instead establish a new rally base. The commentary suggests even bullish traders may be caught off guard if the level holds.
On-Balance Volume (OBV) adds another layer to the analysis. Despite the visible volatility, OBV remains above its rising trendline. This indicates accumulation is occurring, signaling that larger players continue to position themselves while the market appears weak.
Whale Accumulation Signals Market Confidence
Alongside this technical setup, on-chain movements provide further insights into Ethereum’s current condition. Data shared by ZYN revealed that whales are actively accumulating large sums of ETH. In a single day, 10 new wallets purchased 201,000 ETH, valued at $855 million.
Such activity typically occurs when market participants believe Ethereum is near a potential bottom. These purchases came both from exchanges and over-the-counter channels, suggesting coordinated accumulation strategies. This pattern often precedes a rebound in price when supply is gradually removed from circulation.
Observers view this accumulation as a sign of confidence among large investors. With Ethereum’s market structure showing potential for reversal, whale buying may be reinforcing expectations of a renewed push higher.
Outlook Toward $5,000 Level
If Ethereum maintains support near the $4,000 range, analysts believe the next upward move could accelerate quickly. IncomeSharks suggested that the rally could extend back toward the $5,000 mark, fueled by trapped short positions.
This type of setup is designed to shake out weaker hands before a stronger move unfolds. Traders who positioned themselves on the downside may be forced to cover during an upward surge. The result could create additional momentum, amplifying the rally.
Combined with whale accumulation and OBV strength, Ethereum’s current condition suggests a market that is quietly preparing for volatility. While the timing remains uncertain, the alignment of technical and on-chain signals points toward a potential recovery phase.
