The Ethereum fear and greed index at 23% accentuates the fear sentiment among market participants.
The Ethereum price plunged over 3.5% during Friday’s U.S. market hours to trade at $2,731. Along with the broader market correction, ETF outflows, microeconomic uncertainty, and leverage liquidation are contributing to the current market downturn. While the retail traders remain cautious at such times, institutions and large investors show renewed conviction in ETH’s long-term projection by actively accumulating more. Will the top altcoin rebound?
In the past three months, the Ethereum price has plunged from its all-time high of $4,995 to its current trading value of 44.7%. The downtrend has triggered fear among the retail traders, but institutional investors and crypto whales are entering the market at discounted prices.
Data tracked by Lookonchain has found that Bitmine, the mining and investment vehicle linked to Fundstrat’s Tom Lee, had added 63,123 Ethereum coins, valued at roughly $174 million, to its stash over the last seven days. The purchases brought Bitmine’s total to 3.623 million ETH, currently worth around $9.96 billion, taking it ahead of BlackRock’s spot ETF holdings.
BlackRock’s iShares Ethereum Trust ETF, by contrast, saw an outflow that removed 43,237 ETH ($119 million) in just a single day, leaving the fund with 3.605 million ETH, valued at about $9.91 billion.
Separate on-chain flows point to ongoing aggressive accumulation by anonymous big wallets. One address labeled 0xe5c withdrew a further 90,690 ETH worth some $254 million from Binance at an average price of $2,804. The same wallet has borrowed over $627 million in stablecoins from Aave to finance the buying spree and now controls 465,692 ETH or slightly over $1.26 billion at current values.
Another notable buyer, tagged as the “66k ETH Borrow Whale,” added 7,837 ETH worth 21.9 million in the past few hours, bringing the total ETH in its wallet to 440,558 ETH worth $1.23 billion.
In leveraged markets, through an address identified as 0xa5B0, they purchased a quantity of 1,242 ETH on the spot market over two days, then transferred five million USC to Hyperliquid and opened a 20x long position matching 16,366 ETH, with a notional exposure of around $44m.
Amid broader market correction and outflows from BlackRock’s ETF, the ETH price could face notable volatility in the coming weeks, but a steady accumulation from whales has historically coincided with strong market recovery.
In the past two weeks, the Ethereum price plunged from $3,655 to $2,765, registering a loss of 24.3%. Amidst this downswing, the coin breached a key support trendline of a falling wedge pattern in the daily chart.
Theoretically, the chart setup is characterized by two converging trendlines, which indicate a gradual weakening of the bearish momentum and a sustainable setup for price. Therefore, the recent breakdown of the support trendline accentuates the dominance of sellers in current price trends. The 50-and-200-day exponential moving average nearing their bearish crossover signals a potential sell signal emerging to further bolster the current correction trend.
If the coin price shows sustainability below the breached trendline, the seller could force another 14% downswing to retest the next significant support at $2,388.
On the contrary, if the ETH buyers reclaim the support of the falling wedge pattern, the price could rebound to the $3,250 mark and re-challenge the overhead trendline for a potential breakout.
