Decreasing momentum clouds the whales' $74 million ETH accumulation efforts

The ETH market is currently experiencing a bullish sentiment rally. Alongside strong accumulation hints from major whales with a value of $74 million, ETH price still cannot escape the continuous selling pressure. As of now, ETH is trading at $2.32K, down 20.11% over the past 7 days, indicating that the downward momentum is prevailing over the smart money’s accumulation efforts.

Whales Wake Up - Massive Accumulation but Weak Momentum

Two giant whales have just made decisive moves in the market. The first whale has accumulated 20,013 ETH (worth $59 million) from FalconX, currently holding a total of 80,115 ETH (equivalent to $236.55 million) and recently transferred $58 million to Wintermute to prepare for further purchases. The second whale, after 3 months of silence, has just awakened to accumulate 5,099 ETH ($15.14 million) from Kraken.

In just these two transactions, the whales have added 25,112 ETH worth $74.14 million to their holdings. This massive accumulation is often seen as a bullish signal, indicating that seasoned investors have confidence in a potential recovery. However, the current market momentum does not align with this signal.

Technical Indicators Warning - Downward Momentum Dominates Whale Demand

The Spot Taker CVD index remains positive, confirming that whales are still actively buying around the $2.9K - $3.1K price range. However, the DMI-SMI indicator tells a different story: decreasing momentum is not only present but also increasing. This means that the upcoming selling pressure is very strong.

In reality, the current market shows retail investors are panic-selling at every rebound, completely neutralizing the encouraging effects from whales. The declining momentum is overpowering demand, forming a steel wall preventing any recovery. Although whales are trying to build a support floor, the overwhelming selling pressure is too strong to reverse the market trend.

Price Scenario - From $2.3K to Lower Support Levels

Short-term forecasts suggest ETH will continue to be confined within the $2.3K - $3.1K range, where whales will absorb the current supply. However, if the decreasing momentum continues to accelerate and surpasses the demand from smart money, the $2.3K level may not be the final stop. In that case, ETH could test the $2.5K level or even lower.

A rebound to $3.4K remains a potential possibility, but it requires a significant shift in momentum—from decline to growth. This could happen when selling pressure is exhausted and retail investors stop fleeing. At that point, whale accumulation will truly start to pay off.

Currently, you face a choice: trust in whale accumulation and smart money flow, or monitor the declining momentum and prepare for a deeper dip? The answer depends on your risk tolerance.