Ether (ETH) has been navigating a turbulent market, experiencing a significant price rejection that has tested the conviction of traders. On Tuesday, the price of ETH stood at $2,555.77, marking a 3.7% decline in a 24-hour period. This downturn was precipitated by a sharp sell-off near the formidable $2,673 resistance level, which triggered a cascade of liquidations and pushed the asset into a downtrend. The selling pressure was palpable late on Monday, breaking through initial support structures and setting a bearish tone. However, beneath this surface-level price weakness, a powerful undercurrent of accumulation by large-scale investors, or 'whales,' is painting a starkly different picture of market sentiment.

Ethereum Whales on a Historic Buying Spree

Despite the bearish price action, on-chain data reveals a story of immense conviction among major Ethereum holders. According to data from Glassnode, highlighted by the on-chain analysis account lookonchain, whale wallets have been in a period of intense accumulation. For nearly a week, the daily net accumulation by these large entities has surpassed 800,000 ETH. This aggressive buying has swelled the total holdings in wallets containing between 1,000 and 10,000 ETH to over 14.3 million ETH. The peak of this buying frenzy occurred on June 12, when these whale wallets absorbed a staggering 871,000 ETH in a single day—the largest net inflow recorded in 2024. This level of sustained, large-scale buying has not been observed since the bull market of 2017, underscoring the historical significance of the current trend.

Strategic Positioning Amid Price Weakness

This whale-driven accumulation is not random; it appears to be a calculated strategy. The buying spree has coincided directly with Ethereum's retreat from the $2,700 price level, suggesting that these sophisticated investors view the price dip as a prime opportunity to increase their positions at a discount. This behavior often precedes significant market moves and could be interpreted as strategic positioning ahead of potential catalysts. While no specific event is confirmed, such accumulation often happens in anticipation of positive developments, such as progress on spot Ethereum ETFs, favorable regulatory news, or major protocol upgrades that could drive future demand. By absorbing the selling pressure, these whales are effectively setting a floor under the price, creating a fascinating dynamic where short-term technicals clash with long-term on-chain fundamentals.

ETH Price Technicals and Key Trading Levels

From a technical standpoint, the recent trading sessions have provided clear levels for traders to monitor. During the June 16 session, ETH plunged 5.7%, falling from a high of $2,679.99 to a low of $2,527.37, with trading volume for the asset exceeding 560,000 ETH. A critical moment occurred during the 22:00 hour, when a sharp price drop confirmed $2,650 as a new, powerful resistance level. Following this drop, ETH found temporary support and began a slow recovery that stalled near $2,540, entering a tight consolidation range. More recent data shows ETH/USDT trading around $2,615, indicating that the support found in the low $2,500s has held, and buyers have stepped back in. The ETH/BTC pair has also shown strength, rising over 2.3% to 0.02414 BTC, suggesting ETH is currently outperforming Bitcoin. Traders should watch the immediate support around $2,550 and the crucial floor at $2,527. A break above the $2,650 resistance is necessary to invalidate the bearish short-term structure and signal a potential continuation of the recovery, fueled by the relentless whale buying.