Ethereum Whales Defend $3,000 Level Despite Price Downtrend

Ethereum (ETH) has been in a consistent downtrend since the start of the month, staying below the trend line for three weeks. This decline has kept ETH under pressure, testing investors’ patience.

However, Ethereum whales are stepping in to prevent a massive crash, offering a glimmer of hope.

Ethereum Whales Save The Day

Ethereum Whale addresses holding between 100,000 and 1 million ETH has actively acquired the ETH sold by larger wallet holders. Over the weekend, this cohort purchased 1.1 million ETH, worth an estimated $3.5 billion, in a single day. Their buying spree is seen as an effort to stabilize the cryptocurrency.

This move by mid-tier whales is countering the selling pressure from larger holders, demonstrating strong confidence in Ethereum’s potential recovery. While this action has mitigated immediate risks, the market remains cautious as traders assess whether ETH can break free from its current downtrend.

Ethereum Whale Addresses. Source: Santiment

Ethereum’s macro momentum shows mixed signals. Active wallet addresses recently spiked to 784,000, reflecting heightened activity. However, this number fell sharply to 547,000 shortly afterward, signaling rising uncertainty among investors amid ongoing fears of a market crash.

This decline in active participation could slow Ethereum’s recovery as market sentiment remains shaky. Investors are likely waiting for more stability and bullish signals before reentering the market, prolonging ETH’s struggle to regain upward momentum.

Ethereum Active Addresses. Source: IntoTheBlock

ETH Price Prediction: Finding A Way Through The Downtrend

At the time of writing, Ethereum was trading at $3,200, remaining below the downtrend line for three consecutive weeks. Despite the bearish pressure, ETH is holding above the critical support level of $3,131, which remains a key focus for traders.

If the downtrend persists and ETH loses the $3,131 support, the price could fall further to test $3,028. Such a decline would dampen recovery prospects, leaving Ethereum in a vulnerable position as market uncertainty continues to rise.

Ethereum Price Analysis. Source: TradingView

However, breaking through the downtrend line and reclaiming $3,303 as support could invalidate the bearish outlook. This move would require strong support from broader market cues and renewed buying pressure.

If achieved, Ethereum could rally toward $3,500, providing much-needed relief for investors.

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