Ethereum price decreased by 13% over the past week, yet major investors continue to accumulate this crypto asset, which may indicate a potential recovery.
Sharp Drop of Ethereum and Whale Accumulation
During a ten-day period, Ethereum lost over $600 in value, declining from $2,869 to $2,233. This drop was largely attributed to tensions between Israel and Iran, which could have triggered panic selling. However, onchain analysis data reveals that major investors holding more than 10,000 ETH accumulated assets, increasing their holdings by over $265 million. Meanwhile, net inflows to 'smart money' wallets exceeded 871,000 ETH, a record since 2017.
Prospects and Technical Signals
Technically, Ethereum's weekly chart shows a structure similar to the consolidation phase observed between 2019 and 2021. The price of this crypto asset is indeed trading above its 50-week moving average, forming a bullish chart pattern (ascending triangle). However, if the $2,350 resistance level is not broken, a fallback to $2,100 or even $1,800 remains possible. Some analysts even mention an extreme drop to $900 if prolonged selling pressure occurs.
Conclusion
Therefore, despite the current price drop, the active actions of major investors and strong technical signals indicate a potential recovery for Ethereum ahead.
Thus, despite the current price drop, the active actions of major investors and strong technical signals may indicate an upcoming recovery for Ethereum.
