Ethereum whales buy the dip, but is $2.5K or $3K next for ETH?

Key TakeawaysHow is Ethereums price action doing？

What are the altcoins whales up to？

Ethereum whales are aggressively buying the dip!

In total, these holders have accumulated $241.84 million in ETH.

What‘s happening to Ethereum’s supply？

As whales accumulate, Ethereum supply on exchanges is becoming tight. According to CryptoQuant, Ethereums Exchange Reserves declined to a 55-month low of 15.6 million – Worth $42.9 billion.

Source: Cryptoquant

Such a sharp drop means that these whales have absorbed a significant share of the available supply. Often, low supply on exchanges results in a shrinking sell-side liquidity pool.

Historically, low sell-side liquidity has preceded higher prices. Especially as volatility tends to decline as supply shifts to stronger hands.

Is the demand enough to boost ETH？

Strangely, despite a hike in whale accumulation, the same is yet to have a positive impact on the price action. Especially as Ethereum remains structurally bearish.

On the price charts, downtrend momentum has continued to strengthen as evidenced by the Stochastic Momentum Index (SMI). In fact, the SMI dropped to -74.69, indicating strong seller dominance.

Source: TradingView

At the same time, the Advance-Decline Ratio (ADR) has remained below 1, further validating downside strength. Such market conditions might position ETH for more losses.

If the bearish trend persists, ETH could drop to $2535. However, if whale demand finally materialises, it will boost ETH and help it reclaim $3k in the short term.