Ethereum Tests Generational Support as Whales Accumulate Aggressively

Ethereum is testing a critical generational support trendline that could determine its trajectory for the next bull cycle. While retail investors panic and anticipate further declines, smart money is quietly accumulating at what analysts describe as a macro-level reversal zone between $2,200 and $2,400.

The current price action mirrors the exact ascending base structure that fueled Ethereum's explosive 2020 breakout. Technical analysts are drawing parallels to previous accumulation phases that preceded major rallies, suggesting the market may be setting up for a significant move higher despite near-term volatility.

Smart Money Stacks at Multi-Year Support Zones

As Eljaboom noted on X, retail traders are ignoring the bigger picture while Ethereum tests generational support. Smart money is not selling at these levels but rather accumulating into what could become a macro-level squeeze.

The trader emphasized that the structure replicates the ascending base pattern from 2020. The $2,200 to $2,400 zone represents more than just support—it functions as the primary reversal point where institutional capital typically enters ahead of leg-ups toward new highs.

While the crowd waits for a collapse, the chart displays textbook accumulation behavior. Historical data shows that Ethereum has consistently bounced from similar technical setups, rewarding patient buyers who entered during periods of maximum fear and uncertainty.

Ali Charts shared on X that a dollar-cost-averaging strategy should target accumulation between $2,200, $1,500, and $1,100. These levels represent optimal entry points for building long-term positions based on historical price action and Fibonacci retracement zones.

The recommendation aligns with institutional buying behavior observed during previous correction cycles. Major players rarely attempt to time exact bottoms but instead build positions systematically across predetermined zones that offer favorable risk-reward ratios.

An Ethereum ICO wallet containing 40,000 ETH worth $120 million awakened after more than a decade of dormancy. According to Lookonchain on X, the wallet identified as 0x2dCA chose to stake the entire holding instead of transferring funds to exchanges for liquidation.

This decision signals extraordinary conviction from an early investor who acquired tokens for approximately $12,000 during the genesis block in July 2015.

The move to stake rather than sell contradicts typical whale behavior during correction phases and suggests belief in Ethereum's long-term value proposition.

Technical Structure Shows Controlled Selling Pressure

Manofbitcoin observed on X that ETH price reacted precisely to the 78.6% Fibonacci retracement level in wave-B. For the bullish Elliott Wave count to remain intact, price should ideally hold above the last swing low before initiating wave-c of the fourth wave from this region.

The Fibonacci analysis provides a framework for understanding where institutional buyers are likely positioned. The 78.6% retracement represents a deep correction that typically precedes strong reversals when accompanied by accumulation signals from smart money participants.

Acethebullly detailed on X that ETH shows a controlled step-down decline with consistent sell-side pressure. Repeated red market-sell bubbles pushed price lower through several thick bid liquidity shelves shown as orange and yellow bands on orderbook data.

Sellers continued sweeping through attempted support levels until reaching $2,790 to $2,795, where green buy bubbles finally appeared with substantial size. Heavy stacked liquidity above price acted as a sell wall preventing recovery attempts, with price trending down on steady sell aggression.

Only mild buyer absorption materialized near the lower liquidity band. This suggests the market remains in a distribution phase where sellers need to be fully absorbed before a sustainable bounce can develop. The orderflow indicates patient buyers are waiting at lower levels rather than chasing price.

The top addresses have increased their holdings from 96.1% to 97.6% over the past year, demonstrating ongoing accumulation by the largest network participants. The Eth2 Beacon Deposit Contract holds 72.4 million tokens worth approximately $203 billion, representing roughly 60% of total supply locked in staking. Related reading: Crypto Funds Flood $4.4B as Ether ETPs Smash Records

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