Ethereum continued its downward trend after breaking through a key support level, with the price dropping to around $1658 at one point. Trading volume also declined, indicating decreased short-term trading activity. However, the re-entry of a large holder who had been inactive for many years has drawn market attention to whether on-chain funds are taking advantage of the dip.
Whales Resume Leveraged Buying
On-chain data shows that an address that had been inactive for about three years recently resumed activity. The address first deposited 20,000 ETH into Aave V3, then borrowed 30 million USDT, and continued to buy 17,826 ETH at an average purchase price of approximately $1,683.
After this round of transactions, the address's ETH holdings increased to 56,380. Based on the price mentioned in the article, the holdings are worth over $94 million. Since this increase involved borrowed funds, it indicates that the holder was not passively holding the ETH, but actively expanding their position during a market downturn.
ETH breaks below long-term support zone
Despite renewed buying by whales, ETH's price structure has not improved significantly. The article notes that the weekly chart has broken below the long-term support zone around $1700, and also fell below the 200-week moving average around $2470, indicating continued weakness in higher timeframes.
In the past 24 hours, ETH has fallen by more than 6%, and trading volume has decreased by about 15% compared to the previous period. With both price declines and reduced trading activity occurring simultaneously, the market is more focused on whether the support level will continue to be breached.
$1527 becomes the short-term focus
Currently, the market is primarily focused on whether the $1527 level can hold. If this area provides support, ETH may first stabilize and attempt to recover its previous losses. If it continues to break down, the next stronger support level is likely in the $1100 to $1200 range.
Current signals indicate a mix of factors: on one hand, there's continued pressure after the price broke down; on the other hand, large addresses are continuing to accumulate ETH during the pullback. In the coming weeks, whether on-chain accumulator activity expands and how the price performs around the $1527 level will be crucial clues for observing ETH's price movement.
