Ethereum: Whales buy the dip, But is a crash inevitable?

Trench Warfare: Massive Accumulation vs Selling Pressure

The recent drop of Ethereum below the $3,000 mark has acted as a buy signal for some of the market’s largest wallets. According to on-chain data, whales and institutional investors have injected over $130 million to buy this dip. Among them, Trend Research borrowed 70 million USDT to acquire approximately 24,555 ETH, while an OTC whale secured 20,000 ETH via FalconX.

However, this bullish picture is clouded by worrying contrary movements. The giant BlackRock has transferred over 30,000 ETH (approximately $91 million) to Coinbase Prime, a move typically associated with an intention to sell or hedge. This divergence between accumulation by some players and distribution by others creates palpable uncertainty in the market, as the price currently hovers around $3,030.

Technical Analysis: Is the $2,700 Trap Closing In?

From a chart perspective, the loss of the support at $3,000 has validated a bearish break of structure. Analysts are now monitoring critical liquidity zones located lower. If buyers fail to quickly reclaim the current level, the price could be drawn toward $2,718, or even $2,620, where significant stop orders are concentrated.

Moreover, the delta between whales and retail investors has moved into negative territory. This means that despite the sporadic buying mentioned above, the overall trend among large wallets is toward reducing long exposure or adding short positions. With over $280 million in liquidations recorded recently, volatility remains extreme.

Can Ethereum Avoid a Final Capitulation?

The situation is critical for the market’s second-largest cryptocurrency. On one hand, the voracious appetite of certain institutions like BitMine, which continues to accumulate for staking, offers a safety net. On the other, the technical structure and BlackRock’s outflows weigh heavily on sentiment.

Furthermore, the bullish trendline offers an ideal opportunity for market makers to liquidate all the longs accumulated for months below this level in order to buy ETH even lower. In this context, ETH could return to its demand zone around $1,780 in the coming months.

Traders must now monitor the price reaction in the current zone. Will a weekly close below $2,900 confirm the bearish scenario of a drop toward $2,700, or will the accumulators have enough strength to trigger a short squeeze and restart the engine?

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