Ethereum whales are saving the day

Addresses holding from 100,000 to 1 million ETH are actively buying Ethereum sold by larger holders. Over the weekend, this category of investors acquired 1.1 million ETH, worth approximately $3.5 billion, in just one day. Their purchases are seen as an attempt to stabilize the cryptocurrency.
These actions by mid-level whales counter the selling pressure from large holders, demonstrating confidence in a possible price recovery. While this has reduced immediate risks, the market remains cautious as traders assess whether ETH can break out of the current downtrend. Meanwhile, the number of active addresses recently increased to 784K, reflecting increased activity on the network. However, the indicator quickly dropped to 547K. This signals growing investor uncertainty amid lingering market crash concerns.
Such a decrease in activity can slow down the recovery as market sentiment remains unstable. Investors are likely waiting for greater stability and bullish signals before reentering the market. This prolongs the struggle of ETH to recover its upward momentum. At the time of writing, Ethereum remains below the descending trend line for three consecutive weeks. Despite bearish pressure, ETH is holding above the critical support at $3,131. This remains a key point for traders.
If the downtrend continues and ETH loses support at $3 131, the price may fall further and test $3 028. Such a decline will worsen the recovery prospects, leaving Ethereum in a vulnerable position. However, breaking the downtrend line and turning the $3 303 level into support may negate the bearish scenario. This will require strong support from broader market signals and a resumption of buying pressure.
In this case, the token can grow to $3 500, which will give investors much-needed relief.