Ethereum experienced a brief dip below the $2,000 mark this week, marking its first descent beneath this level since March 29. While the price has since stabilised and is currently trading near $2,002, it still remains almost 60% below August’s high of nearly $5,000. However, data indicates that the largest whales in the ETH ecosystem are once again in accumulation mode. Wallets holding a minimum of 100,000 Ethereum have amassed a total of 17.41 million ETH, marking the highest accumulation in the past nine weeks.
These holdings represent 22.03% of Ethereum’s total supply, reaching a notable 10-week high. The latest findings emerge following Santiment’s report indicating that the asset’s decline below $2,000 sparked a surge of “buy the dip” sentiments among retail traders. According to the analytics firm, crypto markets generally respond to sharp declines in one of two ways: either fear dominates, leading traders to abandon the asset, or optimism prevails as traders see lower prices as a chance to buy. The second reaction seemed to be shaping the sentiment surrounding ETH, even in light of recent weaknesses.
This indicated that retail traders were growing more confident, viewing the decline as a discounted entry point rather than a signal of potential deeper losses. However, Santiment cautioned that heightened optimism from the crowd has historically served as a bearish indicator, as retail traders frequently misinterpret market direction during turbulent times. The firm indicated that a more favourable buying opportunity could arise as the current FOMO diminishes and sentiment transitions to panic, a scenario they characterised as a more conventional setup observed near market bottoms.
Bearish technical signals remain present in the market, indicating that they have not entirely vanished. Crypto analyst Ali Martinez stated that Ethereum could experience increased downside pressure if it achieves a weekly close beneath the $1,850 mark. Based on the broader channel structure, Martinez pinpointed two potential downside targets after the rejection. The first target is positioned at approximately $1,560, identified as interim structural support, whereas the second target is around $1,070, representing the lower boundary of the crypto asset’s multi-year range.