Ethereum is showing notable relative strength as it reclaims the $3,150 level and attempts to move higher, signaling the first signs of recovery after weeks dominated by heavy selling pressure, fear and uncertainty. The broader market recovery has helped restore confidence, but ETH’s ability to outperform the major altcoins underlines the growing demand and improved sentiment surrounding the asset.
Adding to the newfound optimism, new on-chain data from Lookonchain reveals a significant move from one of the market’s most recognized whales. During the rebound, whale 0xdECF deposited another 5,000 ETH (worth approximately $15.52 million) into Binance.
This wallet has become known for sending large amounts of ETH to exchanges during the recent recession, often coinciding with moments of increased volatility and capitulation.
The latest deposit shows that the whale remains very active and responsive to market conditions. While such moves can sometimes introduce uncertainty, they also highlight the increasing liquidity and involvement of major investors. Now that price levels have recovered and the whales have been repositioned, Ethereum is entering a critical phase where continued strength could confirm a broader shift in market structure.
Ethereum Whale Distribution Emphasizes Market Caution
According to Lookonchain, whale 0xdECF has sold 25,603 ETH – worth approximately $85.44 million – through Binance and Galaxy Digital since October 28. Despite this significant amount distributionThe wallet still contains 5,000 ETH (approximately $15.52 million), indicating that the whale has not fully exited its position, but has significantly reduced exposure during the recent market downturn.
This pattern of behavior provides important insight into sentiment among large investors: while they are not abandoning Ethereum completely, they are actively managing risk and responding to volatility more aggressively than usual.
Such sustained selling pressure from a deep pocket often acts as a drag on price during periods of weakness, especially when market liquidity is tight. However, the fact that the whale continues to hold a meaningful position signals the expectation of possible recovery – or at least the desire to remain strategically exposed to future upside opportunities.
Ethereum is now in a critical phase. Assets have recovered to important levels, but the medium-term structure remains highly sensitive to macro conditions and whale behavior. If selling by large investors slows and accumulation begins to outpace distribution, the recent recovery could turn into a sustained trend. Otherwise, renewed selling flows could put Ethereum at risk of heading back to lower support zones.
ETH regains near-term momentum but faces heavy resistance
Ethereum’s daily chart shows a clear improvement in momentum after recapturing the region between $3,150 and $3,200, but the broader structure remains vulnerable. The rebound from the support zone between $2,750 and $2,850 marked a decisive shift in buyer behavior, with strong lower wages signaling aggressive demand. This recovery has pushed ETH back above key short-term levels, but the asset still faces a challenging path forward.
The price is now approaching the 50-day SMA and is currently trending lower to just above $3,250, which now acts as immediate resistance. This moving average has hit every rally since late October and remains the first major barrier for bulls to gain back. In addition, the 100-day SMA around $3,450 and the 200-day SMA around $3,600 form a tight cluster of overhead resistance that defines the medium-term downtrend.
The volume of the recent rebound is stronger than previous attempts, indicating that buyers are showing more conviction compared to the mid-November recovery attempts. However, the overall trend is still bearish until ETH can break above the 50-day SMA and close daily candles above $3,300.
Ethereum is in a critical inflection zone: holding above $3,100 strengthens the case for continued recovery, while rejection from the $3,250-$3,300 band could trigger a retest of the $2,800 region. The next few sessions will determine whether this recovery evolves into a deeper trend reversal.
Featured image of ChatGPT, chart from TradingView.com
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