Ethereum (ETH) has been grappling with a persistent downtrend since the beginning of the month, remaining below the trend line for three consecutive weeks. This ongoing decline has put significant pressure on ETH, challenging investors’ patience. Despite this, Ethereum whales are stepping in to mitigate a potential crash and provide a ray of hope.

Whales in Action

Ethereum whale addresses, holding between 100,000 and 1 million ETH, have been actively acquiring the ETH sold by larger wallet holders. Over the weekend, this group purchased 1.1 million ETH, valued at approximately $3.5 billion, in a single day. Their buying spree aims to stabilize the cryptocurrency amidst the selling pressure from larger holders.

This intervention by mid-tier whales showcases their confidence in Ethereum’s potential recovery. While their actions have alleviated immediate risks, the market remains cautious as traders await further signals to confirm whether ETH can break free from its current downtrend.

Mixed Market Signals

Ethereum’s macro momentum exhibits mixed signals. Recently, active wallet addresses spiked to 784,000, indicating increased activity. However, this number quickly fell to 547,000, reflecting growing investor uncertainty and fears of a market crash.

The decline in active participation may hinder Ethereum’s recovery, as market sentiment remains fragile. Investors are likely holding back, waiting for more stability and bullish signals before reentering the market, prolonging ETH’s struggle to regain upward momentum.

Navigating the Downtrend

At the time of writing, Ethereum is trading at $3,200, remaining below the downtrend line for three weeks. Despite bearish pressure, ETH is holding above the critical support level of $3,131, which traders are closely monitoring.

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

However, a break through the downtrend line and reclaiming $3,303 as support could invalidate the bearish outlook. Achieving this would require strong support from broader market cues and renewed buying pressure. If successful, Ethereum could rally towards $3,500, offering much-needed relief for investors.

Conclusion

While Ethereum remains under bearish pressure, the intervention by whale addresses provides a glimmer of hope. The market continues to watch key support and resistance levels, with the potential for a significant recovery if bullish signals emerge. Until then, the market remains cautious, and investors are on the lookout for signs of stability and upward momentum.