ETH Price Plunges +3% to Retest Multi-Year Support Trendline as Whale Accumulation Resumes

On March 29th, the Ethereum price plunged +3% to reach the current trading price of $1,843. This selling pressure accelerated with the U.S. government announcing new tariffs on different industries

The Ethereum price experienced a 3% decline on March 29th, reaching a trading price of $1,843 with new tariffs from the U.S. government on different industries and Bitcoin reversing below $85,000 accelerating the selling pressure.

As the cryptocurrency market continues to navigate a period of volatility, new data from Lookonchain revealed that a large-scale investor, or whale, has been accumulating Ethereum amid the recent correction.

According to the onchain analytics service, the whale, identified by the platform as "0x2540," made a substantial purchase of 3,195 ETH (worth approximately $5.97 Million) on Saturday morning.

This activity comes as the Ethereum price tested a long-coming support trendline, which could be setting up the potential for a bullish counter.

The Ethereum price plunged from $2,103 to $1,836 in a six-day downfall, registering a 12.8% fall. Despite this downturn teasing a bearish breakdown from the long-coming support trendline, the onchain data revealed a substantial purchase of 3,195 ETH (worth approximately $5.97 Million) by large-scale investors on a Saturday morning.

According to a post from Lookonchain, this whale has been accumulating Ethereum since March 26. In total, the whale has acquired a massive 29,341 ETH, which amounts to approximately $58.18 million. The buying spree reflects the growing confidence in Ethereum as a long-term investment.

The price analysis of the daily chart shows a bullish retest to the support trendline coming back from March 2020. This dynamic support has acted as a major accumulation zone for buyers as the previous reversals led to an upswing ranging from 365% to 1,700%.

Concerning the ETH price retest to this ascending trendline just three weeks ago, the RSI slope shows a notable surge, indicating the intact demand pressure from below. If the theory holds, the coin price will likely hold $1,800 and prevent a breakdown below $1,500.

In an optimistic scenario, the price reversal could push the asset up 23% to challenge the resistance trendline (Black), carrying the current correction trend. A potential breakout could signal a change in market dynamics.

On the contrary, a weekly candle closing below the aforementioned support trendline will invalidate the bearish thesis for a prolonged downfall.