Ethereum May Decline to $3.4K as Whale Accumulation Faces Selling Pressure

• Ethereum price declined 5.5% in the last 24 hours, breaching the key $3,700 support level.

• One specific whale cohort continued buying ETH, growing from 1,018 to 1,352 addresses since early July.

• Their ETH holdings rose from 17.24% to 19.58% of supply, while other groups reduced positions, per Santiment data.

Ethereum whale accumulation persists despite price slump below $3,700. Discover why select large holders are buying ETH amid selling pressure and what it means for future trends. Stay informed on crypto market shifts.

What is Driving Ethereum’s Recent Price Decline?

Ethereum whale accumulation highlights mixed signals in the market as ETH prices fell 5.5% over the past 24 hours, dropping below the critical $3,700 support level. This decline reflects broader selling pressure from various holder groups, exacerbated by Bitcoin investors tactically shorting ETH due to its relative weakness. Technical indicators like falling On-Balance Volume (OBV) and Relative Strength Index (RSI) underscore persistent downward momentum.

Why Are Certain Ethereum Whales Continuing to Accumulate?

Supply distribution data from Santiment reveals that while smaller and mid-sized holders have been net sellers, whales with 10,000 to 100,000 ETH addresses have bucked the trend. Since July 9, their wallet count rose from 1,018 to 1,352, boosting their collective holdings from 17.24% to 19.58% of total ETH supply. This selective buying suggests strong conviction in Ethereum’s long-term value, possibly driven by expectations of network upgrades or institutional adoption.

Market analysts note that such accumulation often precedes recoveries, but current spot order sizes from CryptoQuant show balanced whale activity in buy and sell directions over the past two months. Large orders did not signal bottoms in April or July, indicating caution. Expert commentary from blockchain researchers emphasizes that one cohort’s optimism does not override overall bearish sentiment, with ETH facing potential drops to $3,400 if support fails.

Historical patterns show whales accumulating during dips to average down costs, supporting Ethereum’s role as a foundational asset for DeFi and smart contracts. However, the loss of $3,700 demand zone on November 2 has created a major imbalance between $3,839 and $3,654 on the daily chart, per TradingView analysis. This could lead to further exhaustion if selling persists.

Source: ETH/USDT on TradingView

The daily timeframe chart illustrates buyer exhaustion at $3,800 and $3,700 over the past month. Steady OBV decline confirms ongoing distribution, while RSI points to sustained bearish pressure. Investors monitoring these levels should prepare for volatility as Ethereum navigates post-support territory.

One Ethereum Whale Cohort Continues to Buy

Source: Santiment

Santiment’s supply distribution metric indicates widespread selling across holder sizes, with address counts declining for most categories. In contrast, the 10k-100k ETH whale group has expanded steadily, reflecting targeted accumulation amid market uncertainty. This behavior aligns with institutional strategies seen in digital asset treasuries, where firms like BitMine Immersion have held ETH despite equity challenges.

Source: CryptoQuant

CryptoQuant data on spot average order sizes over two months shows significant whale involvement, with buys and sells nearly balanced. Yet, the past month’s trends reveal one consistent buying group against predominant selling. This dynamic underscores Ethereum’s resilience, as whale accumulation in spot markets can stabilize supply during dips.

Broadly, ETH’s underperformance relative to Bitcoin has prompted some BTC holders to short Ethereum for tactical gains. Reports from financial analysts highlight this as a response to Ethereum’s delayed treasury model momentum from summer. Despite this, the accumulating whales’ actions may foreshadow selective recovery if broader market sentiment improves.

Traders remain advised to watch for confirmation above $3,700 for bullish reversal, or below $3,400 for deeper correction to $2,900. Ethereum’s ecosystem strength, bolstered by ongoing developments in layer-2 scaling, supports long-term optimism even in short-term weakness.

Frequently Asked Questions

What does Ethereum whale accumulation signal for investors?

Ethereum whale accumulation, particularly from the 10k-100k ETH cohort, signals bullish conviction among large holders despite recent price drops. It indicates belief in ETH’s undervaluation and potential rebound, though it does not override overall selling pressure from other groups, urging diversified risk management.

Is Ethereum’s price drop to below $3,700 temporary?

The drop below $3,700 appears driven by short-term selling and technical breakdowns, but whale buying suggests underlying support. If momentum holds bearish, prices could test $3,400; however, historical patterns show recoveries following such dips when accumulation intensifies.

Key Takeaways

• Ethereum prices fell 5.5% below $3,700 support: This breach creates a potential imbalance, increasing risks of further declines to $3,400 amid falling OBV and RSI.
• One whale group (10k-100k ETH) accumulated steadily: Wallets grew 33% since July, raising their supply share to 19.58%, contrasting with net selling elsewhere.
• Investors should monitor $3,700 for reversal: Whale activity offers hope, but caution is key as spot orders show mixed signals without guaranteed bottom.

Conclusion

In summary, Ethereum whale accumulation by select large holders provides a counterpoint to the recent ETH price decline and widespread selling, highlighting divergent market views. As technical supports weaken and Bitcoin’s influence persists, Ethereum’s path forward hinges on broader adoption and sentiment shifts. Investors are encouraged to track whale metrics and key levels for informed decisions in this evolving crypto landscape.