Major Ethereum Accumulation Signals Institutional Confidence

While Ethereum's price has faced pressure following a significant retreat from its January peaks, a notable divergence is emerging between market sentiment and the actions of its largest holders. On-chain metrics reveal that major investors have been aggressively accumulating the asset during this period of price weakness, adding over one billion dollars in value to their positions.

Beyond price action, Ethereum's underlying ecosystem continues to demonstrate strength. The network is seeing a resurgence in daily active addresses, reinforcing its status as the premier Layer-1 blockchain. Concurrently, its social dominance has spiked, indicating a renewed wave of discussion and interest relative to other cryptocurrencies. This metric often serves as a leading indicator of attention from both retail and institutional market participants.

A Battle at Key Technical Levels

Having declined more than 15% from its monthly highs, the price of the world's second-largest cryptocurrency sought a base near the $2,950 level. The defense of a crucial support zone around $2,860 proved pivotal, triggering substantial buy-side interest. Ethereum currently trades near $2,948, with its next significant challenge being a resistance wall at $3,010. A sustained break above this threshold could signal the conclusion of the corrective phase, especially after momentum indicators had previously flashed signs of exhaustion.

Should investors sell immediately? Or is it worth buying Ethereum?

The Whale Wallet Signal

The most compelling narrative unfolds behind the scenes. So-called "whale" entities—large institutional investors—have used the recent dip as a buying opportunity, expanding their collective holdings by approximately 350,000 ETH. This accumulation, worth well over $1 billion, is viewed by analysts as a clear signal that sophisticated market players see the correction as an entry point rather than a reason to exit.

This bullish interpretation finds support in the On-Balance Volume (OBV) indicator. Despite declining prices, the OBV has been forming higher lows, a classic divergence that suggests selling pressure is being absorbed by well-capitalized buyers.

Looking ahead to 2026, market observers are focusing on overall structure and liquidity flows. Should the price overcome near-term hurdles, the combination of heavy accumulation by major investors and robust network fundamentals could provide a solid foundation for a potential recovery phase.