Ethereum Faces Key Support Test: Can Whale Buying Save ETH?

Sean Williams

  • Ethereum’s price is currently at a critical support level, with no immediate backup below it.
  • Whales are buying large quantities of ETH, signaling confidence even as the price dips.
  • Ethereum’s future price predictions range widely from $12,000 to $62,500, depending on market conditions.

Ethereum’s (ETH) latest dip has created a storm of uncertainty in the market, but rather than deterring large investors, it appears to be attracting them. Despite warnings from analysts that ETH is resting on its “final major support,” whales are continuing to purchase millions in Ethereum, and some are even more bullish about its future than ever before.

Whale Activity Signals Confidence

Even as retail traders panic-sell during the dip, a wallet linked to Bitmine recently purchased a staggering 21,537 ETH, worth around $59.17 million, at approximately $2,750. This major buy mirrors the accumulation strategies seen with Bitcoin (BTC), such as those employed by MicroStrategy. While social media is rife with predictions of further losses, whale activity remains a sign of market stabilization, not panic.

Market indicators like Open Interest (OI) suggest that there’s still confidence in Ethereum’s future. At $15.46 billion, OI remains steady, meaning traders are holding onto their positions rather than rushing for the exits. The relatively low funding rate of 0.0053 indicates that traders are staying long but not over-leveraging. This is often a sign of calm after a market shake-up.

Tom Lee’s Price Predictions: A Wide Range for Ethereum

In the midst of the uncertainty, prominent analyst Tom Lee has laid out a wide range of potential valuations for Ethereum. According to Lee’s model, ETH could reach $12,000 if it tracks its long-term ETH/BTC average. In a more optimistic scenario, where Ethereum becomes core infrastructure for settlement, Lee estimates ETH could hit as high as $62,500. However, these estimates stand in stark contrast to ETH’s current price of $2,800, leading some to question whether such numbers are realistic or speculative.

ETF Outflows and Market Sentiment Diverge

Another factor adding to the tension is the negative trend in Ethereum ETFs. Recent data shows that ETH ETFs have experienced about $500 million in net outflows, one of the biggest pullbacks in months. At the same time, large players continue buying Ethereum directly from the market, signaling a disconnect between institutional investors and whales. While ETF investors are reducing exposure, spot buyers are accumulating ETH at a rapid pace.

Ethereum is currently sitting on its “final major support” level—a critical point that has historically held strong in past market cycles. If this level fails to hold, analysts warn that the price could rapidly drop, as there would be no immediate support underneath. This has led to the market referring to this moment as “the cliff.” Sellers are showing strength, and volume is increasing, signaling that the pressure is on.

Also Read: Ethereum Crash Triggers FG Nexus Pivot as BitMine Doubles Down on ETH Holdings

However, despite the weakening price action, sentiment in the market remains surprisingly optimistic. If Ethereum can maintain its support, the whale accumulation may look prescient, and long-term price models could begin to seem more realistic. But if the support breaks, the downward spiral could be swift and brutal.

The next few days will likely determine Ethereum’s short-term trajectory. If the current support level holds, the market may stabilize, and ETH’s long-term prospects will look brighter. However, if the price breaks through this key support, Ethereum could be in for a tough road ahead, with much lower levels to contend with.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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