Ethereum (ETH) continues to struggle as its price remains in a steep decline amidst a broader market drawdown. The leading altcoin has dropped by more than 48% from its mid-December 2024 high above $4,000 to a current value of $2,068.

While prices trend downward, significant accumulation by whales points to a contrasting sentiment building in the background.

Whales Accumulate, Exchange Drain

According to data from Santiment, Ethereum whales have accumulated 1.10 million ETH in the past 48 hours, which accounted for nearly 0.92% of the total circulating supply of 120 million ETH. This significant accumulation signals a potential shift in the market, even as the price remains under pressure.

Historically, similar whale activity has led to notable price swings, as seen in January 2025, when the purchase of 330,000 ETH triggered a brief rally.

Supporting this accumulation narrative, Intotheblock revealed that $1.8 billion worth of ETH was withdrawn from exchanges last week – marking the largest weekly outflow since December 2022. Such significant withdrawals often indicate long-term holding strategies rather than immediate selling intentions.

Nevertheless, the broader market sentiment stays cautious as Ethereum continues to face stiff resistance and struggles to regain bullish momentum. The current divergence between price action and whale behavior could indicate that investors are positioning for a potential rebound despite short-term uncertainty.

The ongoing slump in digital asset prices is taking a toll on high-profile investors. For instance, US President Donald Trump-backed World Liberty Financial is facing significant losses, with its cryptocurrency portfolio down $110 million from an initial investment of $336 million, according to data from Arkham Intelligence.

Although the firm holds nine different cryptocurrencies, Ethereum accounts for 65% of the total loss, which makes it the largest contributor to the decline.

Speculation of Rebound

Crypto analyst Merlijn The Trader said that Ethereum appears to be mirroring its 2016 price pattern, which has raised speculation about a potential repeat of its historic rally. While observing the long-term chart, he pointed out that ETH has followed a similar structure to its previous cycle, including a sharp correction and a consolidation phase.

As such, the recent price dip may represent the “fake-out” stage – a period of market uncertainty and false breakdowns – that preceded Ethereum’s explosive move in the past. If this pattern holds, the altcoin could be poised for a significant breakout in the coming months.

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