Ethereum has seen a notable price drop of over 13%, causing concerns among investors who were expecting an upward breakout. This decline brought Ethereum down to $2,380 by Friday. However, on-chain data shows an interesting trend as whale activity reached a six-week high during this price dip.
The increase in large transactions is often viewed as a positive sign, indicating accumulation by whales. Such activity generally signifies confidence in a price recovery due to the long-term potential these investors see in undervalued assets. The coming days will be crucial for Ethereum as investors monitor whether the cryptocurrency holds above its recent lows to set the stage for a rebound.
Despite the retracement, the overall sentiment among investors and analysts remains positive for Ethereum. The spike in whale activity suggests that there is potential for renewed confidence, implying that major stakeholders might be laying the groundwork for upward price movement.
Speculation persists that institutional investors, or "smart money," are gradually accumulating Ethereum, making subsequent price increases probable. This accumulation could lead to a strong price push once it reaches a critical mass, particularly if high-cap stakeholders support the momentum.
Currently trading at $2,466, Ethereum's price action remains subdued, still hinting at potential bullishness as it stays above crucial support areas. For Ethereum's bulls to recapture the market, breaking above $2,550 is vital, aiming for a new local high at the 200-day EMA of $2,783.
If the price fails to recover in the coming days, it could result in prolonged consolidation or a deeper correction, possibly testing previous support levels. The situation remains finely balanced, with significant attention on Ethereum's price trajectory in the near term.
