Ethereum is showing notable relative strength as it attempts to recover the $3,150 level and push higher, indicating early signs of recovery after weeks dominated by massive selling pressure, fear, and uncertainty. A broad market rally has helped restore confidence, but ETH's ability to outperform major altcoins highlights growing demand and improving sentiment towards the asset.
Adding to the renewed optimism, new on-chain data from Lookonchain reveals a significant move by one of the most recognized whales in the market. During the rebound, whale 0xdECF deposited an additional 5,000 ETH into Binance, worth approximately $15.52 million.
These wallets are well-known for sending large amounts of ETH to exchanges during recent recessions, which often coincide with moments of heightened volatility and capitulation.
Recent deposits suggest that whales are still very active and responsive to market conditions. While these movements can sometimes create uncertainty, they also highlight increased liquidity and participation from major holders. With the price recovering key levels and whale positions shifting, Ethereum has entered a critical phase where continued strength could confirm broader changes in market structure.
Ethereum Whale Distribution Highlights Market Caution
According to Lookonchain, whale 0xdECF has sold 25,603 ETH (equivalent to approximately $85.44 million) on Binance and Galaxy Digital since October 28. Despite this significant distribution, the wallet still holds 5,000 ETH (about $15.52 million), suggesting that the whale is not completely out of its position, but has significantly reduced its exposure during the recent market downturn.
These behavioral patterns provide important insight into the sentiments of large holders. They are not abandoning Ethereum completely, but they are actively managing risk and responding to volatility more aggressively than usual.
This constant selling pressure from large wallets often serves to drag prices down, especially during bearish periods when market liquidity is low. However, the fact that whales continue to hold meaningful positions signals expectations of a potential recovery, or at least a desire to remain strategically exposed to future upside.
Ethereum is now at a critical stage. Assets have recovered key levels, but medium-term structures remain highly sensitive to macro conditions and whale behavior. If selling by major shareholders slows and accumulation outstrips distribution, the recent rebound may solidify into a continuing trend. Otherwise, renewed sales flows could run the risk of Ethereum revisiting lower support areas.
ETH regains short-term momentum but faces significant resistance
Ethereum's daily chart shows a clear improvement in momentum after reclaiming the $3,150-$3,200 region, but the broader structure remains fragile. The bounce from the $2,750-$2,850 support zone has resulted in a decisive change in buyer behavior, with a strong lower wick indicating aggressive demand. This rebound has brought ETH back above key near-term levels, but the asset still faces a challenging situation.
The price is currently approaching the 50-day SMA and is currently trending lower just above $3,250, which acts as immediate resistance. This moving average has capped every rally since late October and remains the first major barrier to a return to strength. Additionally, the 100-day SMA near $3,450 and the 200-day SMA near $3,600 form a tight cluster of overhead resistance that defines a medium-term downtrend.
Volume on the latest rebound has been stronger than on previous attempts, suggesting buyers are showing more confidence compared to the mid-November recovery attempt. However, the overall trend remains bearish until ETH crosses its 50-day SMA and begins closing a daily candle above $3,300.
Ethereum is at an important inflection point. A hold above $3,100 would strengthen the case for a continued recovery, while a rejection in the $3,250-$3,300 range could trigger another retest of the $2,800 region. The next few sessions will determine whether this bounce develops into a deeper trend reversal.
Featured image from ChatGPT, chart from TradingView.com
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