Whale Buys $300M Ether Amid 10% Price Dip

Ethereum Market at a Crucial Turning Point

Over the past week, the Ethereum (ETH) market has witnessed a remarkable event as a “whale” purchased ETH worth $300 million, despite the cryptocurrency experiencing a sharp decline of nearly 10%. This marks the first weekly drop after five consecutive weeks of gains, raising concerns among investors about a potential trend reversal.

However, this “buy the dip” move reflects long-term optimism. According to on-chain data from Arkham Intelligence, this large-scale purchase signals strong conviction that the current correction is only temporary, creating an opportunity for accumulation before a potential market recovery.

Reasons Behind ETH’s Price Drop

 - Profit-taking and deleveraging: Following a strong price rally, many investors realized profits and reduced leveraged positions, pushing ETH below $3,400.

 - Impact from traditional markets: A sell-off on Wall Street, coupled with a stronger U.S. dollar and disappointing U.S. jobs data, has heightened risk aversion in the crypto market.

 - Signals from derivatives markets: Data from the options market indicates growing bearish sentiment toward ETH, with capital flows shifting toward Bitcoin.

Bullish Divergence – Whales Betting on an Uptrend

The massive purchase during a price decline represents a form of bullish divergence—a technical indicator signaling potential upward momentum. While ETH’s price chart shows a temporary loss of bullish momentum, the presence of such a significant buy order reflects expectations of a rebound.

Whales, typically large institutions or wealthy investors, often accumulate during market panic, laying the foundation for future rallies. This process of absorbing supply from “weak hands” is currently taking place, reinforcing ETH’s medium- and long-term outlook.

Comparison with Bitcoin – Shifting Market Sentiment

While ETH dropped nearly 10%, Bitcoin (BTC) only declined 4.5% during the same period. This disparity confirms a shift in market sentiment, with investors showing a stronger preference for BTC over ETH in times of uncertainty.

Historically, however, ETH’s sharp corrections have often presented significant opportunities for patient, long-term investors—just as demonstrated by this whale’s recent action.

Conclusion

Despite ETH experiencing its steepest weekly loss in over a month, the whale’s $300 million purchase signals long-term confidence and the potential for a market rebound. Retail investors should carefully consider their trading strategies, avoid being swayed by short-term volatility, and closely monitor whale activity and institutional flows to anticipate upcoming market trends.