Ethereum has recently demonstrated resilient market behavior following a price decline, hinting at a potential base formation rather than a fleeting bounce. Amidst the downward pressure, significant institutional and large-scale buyers have strategically absorbed supply, showcasing strong conviction in its long-term prospects. This coordinated activity across various market segments suggests a calculated stabilization period is underway.
Strategic Accumulation and Technical Foundation
During Ethereum's recent dip, large off-market buyers aggressively stepped in, accumulating substantial amounts of ETH while prices were below resistance levels. This absorption occurred predominantly off-exchange, preventing a spike in spot inflows and suggesting a lack of urgency among sellers. Notably, an OTC whale accumulated 33,000 ETH in a single day, and DBS-linked wallets added nearly 25,000 ETH within a week, demonstrating a willingness to take on downside risk. This consistent off-market demand quietly built a robust support base. Technically, Ethereum's price has stabilized within a descending channel, successfully holding key support levels around $2,261 and preventing a deeper breakdown, even as lower highs continue to cap upside attempts.
Trader Confidence and Shifting Momentum
Further reinforcing this optimistic outlook, market indicators and trader positioning reflect a growing confidence. The Relative Strength Index (RSI), which previously plunged into oversold territory, has begun a recovery, signaling that selling pressure is fading and momentum is stabilizing. Concurrently, top Binance traders have maintained a strong net-long bias, indicating their comfort with exposure at current price levels and aligning with the observed off-market accumulation. Moreover, funding rates have recovered significantly, and Open Interest is gradually rebuilding, suggesting a cautious repositioning of leverage rather than aggressive unwinding, thereby keeping market conditions balanced and preventing immediate overheating. These converging signals across large-player activity, technical structure, and derivatives markets collectively suggest Ethereum is building a solid demand base. While the broader corrective trend remains intact and key resistance levels lie ahead, the resilience demonstrated by sustained off-market accumulation and unwavering trader confidence points towards a deliberate stabilization phase, preparing the ground for a potential longer-term recovery.
