Ethereum’s price fell to $2,056 amid a market pullback, yet significant accumulation was observed from large investors. Whales and institutions, including a single entity withdrawing $70 million worth of ETH and Bitmine accumulating $95.3 million, used the dip to build positions, pushing the exchange supply to a multi-year low. Despite this demand, technical indicators show ETH remains in a bearish trend below key moving averages.
Ethereum traded at $2,056 at press time, marking a daily decline of 5.56% and adding to its weekly losses. Interestingly, whales and institutional investors used this market pullback as an opportunity to accumulate ETH.
Data showed large whale orders for two consecutive months according to Spot Average Order Size metrics. While some whales sold to reduce exposure, others continued their accumulation.
Onchain Lens reported that four wallets belonging to the same whale withdrew 32,880 ETH, worth approximately $70 million. The whale had created these wallets 113 days prior, suggesting a patient, strategic entry into the market.
Institutional investors have also continued purchasing ETH. Notably, Bitmine sustained its buying spree, accumulating 45k ETH worth about $95.3 million.
Exchange flows validate the rising scarcity from this accumulation. Ethereum’s Exchange Supply Ratio has dropped to its lowest level since 2017 based on CryptoQuant data.
Despite strong positioning from whales and institutions, ETH remains locked in a bearish price structure. The downtrend is intensifying, and the Relative Strength Index (RSI) confirms this weakness.
The RSI made a bearish crossover, falling to 47, which indicates weakening market demand. Concurrently, ETH traded below its 20- and 50-day EMAs, further validating the trend’s strength.
Such conditions point to continued weakness if external market forces remain unfavorable. Under these circumstances, ETH could potentially slip below the $2,000 support level.
However, should external market forces cool off while major accumulation continues, ETH could reclaim $2,100. This scenario might then see the asset eyeing the $2,397 price level.
