Ethereum (ETH) has seen underwhelming price action this year, disappointing analysts and investors who expected a massive breakout. Instead, ETH is now trading at its lowest levels since October 2023, as bears maintain control and bulls struggle to reclaim momentum. The $2,000 level remains a critical barrier, and ETH must reclaim it soon to prevent further downside. The broader market remains weak, with macroeconomic uncertainty and trade war fears weighing heavily on both crypto and traditional markets. With US stocks also experiencing a correction, investors are cautious about risk assets, setting the stage for a deeper sell-off if conditions worsen. However, despite the ongoing bearish sentiment, some analysts remain optimistic about a potential market recovery in the coming months. Data from Santiment reveals a notable bullish signal, as whales have bought more than 420,000 Ethereum in the last five days. This accumulation suggests that large investors see current price levels as a buying opportunity, potentially hinting at a reversal in the near future. With ETH trading near key support , the next few weeks will be crucial in determining whether Ethereum can recover or if more downside is ahead. Ethereum Whale Accumulation Suggests Long-Term Optimism Ethereum has been in a steep downtrend, losing over 57% of its value since late December. Despite brief attempts to recover, ETH continues to fail at reclaiming crucial price levels, signaling further downside risks. Ethereum is now trading below a multi-year support level, which has flipped into strong resistance, making it even harder for bulls to regain momentum. Adding to the negative outlook, macroeconomic uncertainty and trade war fears continue to weigh on both crypto and traditional markets, leading to increased risk-off sentiment among investors. With the US stock market also struggling, Ethereum remains under pressure, setting the stage for a potentially deeper correction. However, not all signs are bearish. Some analysts believe that Ethereum could recover in the coming months, and on-chain data is showing potential signs of accumulation. Crypto analyst Ali Martinez shared Santiment data , revealing that whales have bought more than 420,000 Ethereum in the last five days. Historically, large-scale whale accumulation tends to be a strong long-term bullish signal for Ethereum. When whales increase their holdings, it usually suggests growing confidence in ETH’s future price appreciation. In previous cycles, whale buying at low prices has often preceded major rallies, as accumulation reduces the available supply on exchanges, increasing buying pressure over time. Related Reading: $90K Emerges As Bitcoin Psychological Battleground – Key Level Dictates Market Sentiment For now, Ethereum must reclaim key levels to confirm a trend reversal. If whales continue accumulating, ETH may be setting up for a long-term recovery, even if short-term price action remains volatile. ETH Bulls Fight To Reclaim Key Levels Ethereum is currently trading at $1,900, facing continued resistance after days of struggling below the $2,000 mark. The broader market weakness and selling pressure have made it difficult for bulls to regain momentum, leaving ETH vulnerable to further downside if key levels are not reclaimed soon. To confirm a recovery, bulls must push ETH above $2,000 and then break through the critical $2,250 resistance. A successful reclaim of these levels would mark the beginning of a potential recovery phase, allowing Ethereum to build momentum for a larger move upward. However, if ETH fails to reclaim these levels, selling pressure could intensify, driving the price toward lower demand zones. A break below current support would likely send ETH down to the $1,700 range, and if bearish momentum persists, a further decline to $1,600 could follow. With market sentiment still fragile, the next few days will be crucial in determining whether Ethereum can stabilize and recover or if it will face deeper corrections. Bulls need to step in soon to prevent further downside and regain control over price action. Featured image from DALL-E, chart from TradingView
