Ethereum Whale Activity Signals Bullish Counterattack

The crypto market turned bearish in the first few days of April as U.S. President Donald Trump announced new tariffs on imports from various countries.

The cryptocurrency market experienced a downturn early in April as U.S. President Donald Trump announced new tariffs on imports from various countries. The selling pressure pushed major cryptocurrencies, Bitcoin and Ethereum, below key support levels, suggesting a continuation of the correction trend. However, on-chain data from Benzinga Pro reveals no signs of fear among large-scale investors as they are actively buying the ETH dip.

Affected by the tariff war, the Ethereum price dropped to $1,750 ahead of the U.S. trading session, reaching its lowest point since October 2023. While the market trend suggests further declines, chain data highlights accumulation from smart-money investors.

According to blockchain tracker Lookonchain, a crypto whale spent 11.5M USDC to purchase 6,488.5 ETH at an average price of $1,772.

In a similar vein, Intotheblock data shows Ethereum whales actively "buying the dip," with the largest ETH wallets adding over 130,000 ETH to their holdings just yesterday. This accumulation trendline signals growing confidence among institutional players in Ethereum’s long-term prospects despite short-term price fluctuations.

Bear Traps Sets Ethereum Price Surge Past $2,000

An analysis of ETH’s daily chart shows a V-top reversal from $2,103 to the current trading value of $1,786, registering a 16.8% drop. The falling Ethereum price breaks below a multi-year support trendline, accelerating the bearish momentum in this asset.

However, the coin price shows a lack of follow-up on this breakdown, signaling weak conviction from market sellers. As the price movement shows increasing demand pressure at $1,750 support, the buyers could counterattack and reclaim the breached support trendline.

A potential upswing will mark the previous breakdown as a bear trap and drive a recovery above the 20-day EMA and $2,000. A bullish breakout from these initial barriers is crucial to drive a sustainable recovery.

On the other hand, if the sellers continue to defend the 20-day EMA slope, the current correction could be prolonged in April’s second half.