After a strong five-week rally, Ethereum (ETH) faced a sharp correction this week, dropping nearly 10% and falling briefly below $3,400. However, a massive $300 million whale purchase suggests strong long-term confidence in the cryptocurrency despite short-term volatility.
ETH Suffers Weekly Decline as Market Sentiment Shifts
The correction ends ETH’s winning streak, as investors lock in profits and global market uncertainty weighs on crypto sentiment. In contrast, Bitcoin’s milder 4.5% loss highlights a temporary sentiment shift away from Ethereum.
Ether’s price action signals short-term weakness, possibly triggered by broader de-risking across both crypto and equity markets.
Whale Accumulates $300M ETH During Price Drop
Despite the downturn, on-chain data from blockchain analytics platforms reveals a significant development: a single whale address acquired $300 million worth of ETH during the sell-off. This “buy-the-dip” move hints at a potential bullish divergence between price and smart money behavior.
Large-scale accumulation during weakness is historically seen as a precursor to long-term rebounds.
Bullish Divergence: A Sign of Hidden Strength?
This divergence between falling price and rising whale demand raises the possibility that the current correction is temporary, and may be followed by strong recovery momentum.
Historically, similar divergences have led to medium-term rallies once selling pressure subsides.
Technical analysts are closely watching the $3,300–$3,400 support zone. A strong defense of this level, paired with continued smart money inflows, could lay the groundwork for another rally toward $3,700 and beyond.
Ethereum Outlook: Temporary Dip or Trend Reversal?
While ETH faces short-term headwinds, institutional-scale accumulation signals that major players expect future upside. The broader market will look for confirmation from Bitcoin stability, macroeconomic signals, and Ethereum’s on-chain metrics.
For now, Ethereum’s recent dip appears more like a strategic re-entry point for long-term investors than a full-scale trend reversal.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.