On January 13th, the crypto market witnessed another wave of selling pressure as Bitcoin teased a breakdown below $90,000. The extended correction is significantly influencing most major altcoins including ETH. The falling Ethereum is at a $3,000 crossroads as increased whale activity could influence a reversal or downfall.
According to Coinmarketcap, Ethereum’s market capitalization is at $365.5 Billion, while the 24-hour trading volume is at $32 Billion.
Key Highlights:
- Ethereum price breakdown below the $3,150 neckline support hints at an extended correction ahead.
- The Ethereum price could plunge another 14% before testing a major support trendline at $3,120.
- An active accumulation trend by crypto whale signals buy-the-dip sentiment intact in crypto investors.
Institutional Investors Bet Big on Ethereum as Market Dips
Recent on-chain activity has highlighted significant Ethereum coin purchases by whales and institutional investors, signaling confidence despite the recent market downturn.
One notable transaction reported by EmberCN reveals a whale spent $26.23 million DAI to purchase 7,983.8 ETH at an average price of $3,286.
Another update from EmberCN reported that a whale dubbed “Band Brother” recently acquired an additional 5,672.9 ETH worth $17.35M. This purchase completed a broader strategy, converting a total of $54.65M USDT into 17,125.6 ETH at an average price of $3,191.
Furthermore, the onchain data from Lookonchain emphasizes the activity of a wallet linked to Longling Capital, which withdrew 10,000 ETH (valued at $30.76M) from Binance. The wallet also borrowed $9 million USDT from Aave and redeposited the funds back into Binance.
Such active accumulation from large players has often been followed by a major reversal and bullish sentiment in the market.
ETH Coin Correction Heading for A Major Support Test
Since the mid-December top, the Ethereum price has witnessed a major downturn from $4,108 to $3,041— a 26% decrease. Analysis of the correction in the daily chart reveals the formation of a classic reversal pattern called head and shoulder.
The chart setup shows three peaks— with the middle one extending higher than the two nearly same height shoulders. With an intraday loss of 7.3%, the ETH price shows a major breakdown below the $3,120 neckline and 200-day EMA.
If the breakdown holds, the coin sellers push the asset 14.5% down to retest a dynamic support trendline intact since October 2023. A further breakdown from this level could drive an extended correction to the yearly support trendline at $2,100.
On the contrary, if Ethereum price fails H&S breakdown, the buyers could counterattack and invalidate the bearish thesis.
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