• Ethereum’s exchange reserves hit a 55-month low of 15.6 million ETH, tightening supply.

• Whales, including major holders like the “66,000 Borrowed Whale,” purchased significant ETH volumes from platforms like Binance.

• Despite accumulation, Ethereum’s Stochastic Momentum Index at -74.69 indicates persistent seller dominance.

Ethereum whales buying the dip: Discover how major investors accumulated $241.84M ETH amid price drop to $2650. Explore supply trends and price outlook for ETH recovery. Stay informed on crypto market shifts today.

What is driving Ethereum whales to buy the dip?

Ethereum whales buying the dip are capitalizing on the cryptocurrency’s recent 10.9% decline to a five-month low of $2650, viewing it as a strategic entry point. Large investors have accumulated approximately $241.84 million worth of ETH, indicating strong conviction in the asset’s long-term potential despite short-term bearish trends. This activity contrasts with broader market pressures, highlighting selective optimism among institutional players.

How has Ethereum’s price been performing recently?

Ethereum has navigated a challenging quarter, trading within a descending channel that underscores sustained bearish sentiment. The asset fell sharply by 10.9%, reaching $2650 before a modest rebound to $2720. Data from CryptoQuant shows spot average order sizes surging, with large transactions pointing to heightened whale participation on both buying and selling fronts. This pattern suggests whales are positioning for an eventual upturn, absorbing supply during the downturn. Exchange reserves have also dwindled to 15.6 million ETH, valued at $42.9 billion, the lowest in 55 months, which could limit downside liquidity and support future price stabilization.

Source: Cryptoquant

Key transactions underscore this trend. Onchain Lens data highlights the “66,000 Borrowed Whale” acquiring $162.77 million in ETH from Binance and depositing it into Aave V3, boosting holdings to 432,718 ETH worth $1.23 billion. Another group of three whales secured 9,974 ETH, approximately $30 million, mainly via Binance. Additionally, Tom Lee’s Bitmine added 17,242 ETH valued at $49.07 million from FalconX and BitGo.

Source: Onchain Lens

These moves collectively represent substantial demand during a period of price weakness, often a precursor to reversals when high-conviction buyers enter. As Ethereum’s supply tightens, the shift toward stronger hands could reduce volatility and pave the way for appreciation.

Source: Cryptoquant

Frequently Asked Questions

What impact is whale accumulation having on Ethereum’s supply?

Whale accumulation is significantly reducing Ethereum’s available supply on exchanges, with reserves dropping to a 55-month low of 15.6 million ETH valued at $42.9 billion, according to CryptoQuant. This tightening often leads to lower sell-side liquidity, historically correlating with price increases as demand outpaces available tokens.

Will Ethereum’s current bearish indicators prevent a price rebound?

Ethereum faces ongoing bearish pressure, with the Stochastic Momentum Index at -74.69 signaling strong seller control and the Advance-Decline Ratio below 1 confirming downside momentum. However, sustained whale buying could counter this if it materializes into broader demand, potentially pushing ETH back toward $3,000 in the near term.

Source: TradingView

Expert analysis from on-chain observers notes that while short-term risks persist, with potential drops to $2535 if trends continue, the influx of institutional capital via whales positions Ethereum for resilience. Monitoring exchange flows and order sizes remains crucial for gauging shifts.

Key Takeaways

• Ethereum price decline: ETH fell 10.9% to a five-month low of $2650 before slight recovery to $2720, trading in a descending channel.
• Whale accumulation surge: Investors bought $241.84 million in ETH, including major transactions boosting holdings to over $1.23 billion for key players.
• Supply tightening signal: Exchange reserves at 15.6 million ETH low could reduce downside pressure; watch for demand to drive recovery toward $3,000.

Conclusion

In summary, Ethereum whales buying the dip amid a 10.9% price drop to $2650 highlight institutional confidence, with $241.84 million accumulated and exchange reserves at a 55-month low signaling supply constraints. As bearish indicators like the Stochastic Momentum Index persist, this whale activity could catalyze a rebound if broader demand follows. Investors should track on-chain metrics closely for signs of Ethereum price stabilization and potential upside in the coming months.