Ethereum (ETH) has dropped 13.6% over the past week, largely due to rising geopolitical tensions in the Middle East, particularly between Israel and Iran. Despite this recent price slump, Ethereum whales appear undeterred, signalling confidence in the digital asset’s long-term recovery.
Ethereum Whales Are Not Budged Despite Recent Loss
According to a recent CryptoQuant Quicktake post by technical trader Mignolet, ETH whales are unfazed by the recent price pullback in the cryptocurrency. Notably, the digital asset has tumbled from $2,869 on June 11 to the mid $2,200 range at the time of writing.
Unlike the double-top pattern observed in 2021 – when Ethereum saw a notable increase in transaction outflows as whales exited near the top – current data suggests that whales are not making similar moves.
The analyst shared the following comparative chart showing that in previous market cycles, spikes in ETH withdrawals from wallets were typically followed by major price pullbacks. However, such spikes are currently absent, suggesting low exit activity.
In a recent post on X, crypto analyst Ted Pillows added further support to this view, stating that Ethereum whales are actually buying the dip. According to the analyst, wallets holding 10,000 ETH or more collectively added over $265 million worth of ETH during the market pullback on June 21.
Nevertheless, Pillows warned that if ETH fails to break above the $2,350 resistance level soon, it may revisit the $2,100 support. A failure to hold this level could expose the asset to a further decline toward $1,800.
On the other hand, crypto trader Merlijn The Trader offered a more optimistic take. The analyst compared Ethereum’s current price behavior to the accumulation phase seen between 2019 and 2021, stating that “ETH to five-figures isn’t a dream,” implying a long-term bullish outlook remains intact.
Headwinds Brewing For ETH?
Although technical indicators point toward further upside for the second-largest cryptocurrency by market cap, some market experts opine that ETH may be on the verge of entering a period of downtrend before it resumes its bullish trajectory.
For example, seasoned crypto market expert Aksel Kibar recently remarked that ETH may be preparing for a period of significant downtrend movement. The analyst gave a stark warning of ETH possibly falling all the way down to $900.
Similarly, rising sell-volume for ETH threatens to further disrupt the digital asset’s positive price momentum. At press time, ETH trades at $2,233, up 2.4% in the past 24 hours.
Featured Image from Unsplash.com, charts from CryptoQuant, X, and TradingView.com
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