Ethereum has had a week of extreme volatility, capturing the attention of traders and investors alike. The cryptocurrency saw a sharp decline below the $3,000 level early in the week before seeing an impressive recovery to reach highs at $3,500. Now, Ethereum is at a pivotal price point of around $3,300, as market participants evaluate a potential next move.
Adding to the curiosity, lead analyst Ali Martinez shared data highlighting significant accumulative activity in the Ethereum market. According to Martinez, whales have amassed more than 330,000 ETH in the past week alone, indicating strong confidence from top holders. This trend indicates that institutional and high-net-worth investors are positioning themselves for future gains, which reinforces bullish sentiment.
The combination of a price rebound and notable accumulation activity has created a sense of anticipation for Ethereum’s next phase. As the asset remains above critical support levels, many analysts are optimistic about the potential for a continued rally. With whale activity signaling rising confidence and Ethereum’s role as a leader in decentralized finance (DeFi) and still-dominant NFTs, the outlook for the cryptocurrency continues to generate interest across the market. As the week progresses, all eyes are on Ethereum to see if it can capitalize on this momentum and push higher.
The smart money is making big moves
Ethereum (ETH) has faced sustained selling pressure over the past six weeks, sparking speculation about whether the asset may underperform this market cycle. Despite this bearish sentiment, the data suggests a contradictory narrative: the smart money continues to accumulate Ethereum, signaling confidence in its long-term potential. Many analysts now expect Ethereum to see a major rebound in the coming weeks.
Leading analyst Ali Martinez Compelling data was recently shared on XWhich reveals that whales have collected more than 330,000 Ethereum in the past week. This large purchase, valued at more than $1 billion, underscores the strong demand from large holders, who are often referred to as the “smart money.” This cumulative activity is usually viewed as a bullish indicator, as it reflects confidence among experienced investors in Ethereum’s future price performance.
This accumulation has sparked renewed optimism among ETH investors, who view it as a sign of fundamental strength despite recent challenges. The coming weeks will be pivotal as Ethereum tests key demand levels. Maintaining these levels will be crucial to reverse the downtrend and regain upward momentum.
Market participants are closely monitoring Ethereum’s price movement, and many are anticipating a potential rally fueled by increased demand and improving sentiment. If ETH can maintain its support levels and capitalize on the whale accumulation trend, it could pave the way for a strong recovery, reaffirming its position as a leading force in the cryptocurrency market.
Ethereum testing for critical demand
Ethereum (ETH) had a turbulent week, as sharp price swings kept traders on their toes. After a strong rally on Friday, the price of ETH fell more than 6% within a few hours, bringing the price down to test the key demand level around $3,300. This level is crucial for bulls, as holding it can provide the foundation needed to reverse the recent downtrend and reignite a potential rally.
The $3,300 level is not only technical support, but also psychological support, indicating whether buyers can step in to stabilize the market. If Ethereum fails to maintain this level, the asset risks deeper corrections that could dampen bullish sentiment. On the other hand, maintaining support here would show resilience and may attract renewed buying interest.
For Ethereum to regain momentum, reclaiming the $3,500 mark is necessary. This level represents a major obstacle, and a decisive move above it would signal strength and pave the way for further upside. Until ETH reclaims $3,500, the market may remain cautious, as investors closely monitor price action for signs of a turnaround.
Featured image by Dall-E, chart from TradingView
