Ethereum Price Plunges Below $3,700: Whale Buying Signals Hope Amid Bearish Storm

Ethereum Price Plunges Below $3,700: Whale Buying Signals Hope Amid Bearish Storm

Ethereum (ETH) has taken a sharp hit, dropping 5.5% in the last 24 hours and slipping below the crucial $3,700 support level. As the leading altcoin faces mounting selling pressure, a specific group of Ethereum whales is quietly accumulating, sparking questions about whether this could signal an impending reversal—or if the downtrend has further to run.

While the broader market remains cautious, this whale activity highlights a divide in sentiment. Not all holders are selling; one influential cohort is betting big on ETH's long-term potential. However, technical indicators and on-chain data paint a more bearish picture in the short term. Here's a deep dive into what this means for investors and where Ethereum might head next.

Key Takeaways:

• ETH breaks below $3,700, opening the door to $3,400 and potentially $2,900.
• Whales holding 10,000–100,000 ETH have increased their stake from 17.24% to 19.58% since July.
• Overall selling pressure dominates, with declining address counts across most holder tiers.
• Bitcoin bulls are reportedly shorting ETH to capitalize on its relative weakness.

Understanding the Whale Accumulation Signal

In crypto markets, whale movements often serve as leading indicators. When large holders accumulate during downturns, it can reflect strong bullish conviction and confidence in future price appreciation. For Ethereum, one particular group of whales—those controlling between 10,000 and 100,000 ETH—has been on a buying spree.

Since July 9, the number of wallets in this bracket has surged from 1,018 to 1,352. More importantly, their collective share of the total ETH supply has climbed from 17.24% to 19.58%. This isn't minor pocket change; it represents billions of dollars flowing into ETH at depressed prices.

This accumulation stands out against a backdrop of widespread distribution. Most other holder cohorts—from small retail investors to larger entities—have been reducing their positions. The net effect? A clear split in market psychology: institutional-sized players are positioning for a rebound, while the majority appear to be cashing out or hedging against further losses.

But does this guarantee a trend reversal? History suggests caution. Similar whale buying in April and July coincided with local tops rather than bottoms. Large spot orders can fuel short-term pumps, only for selling to resume once retail FOMO kicks in. Investors should view this as a positive long-term signal, not an immediate buy trigger.

Technical Breakdown: Why $3,700 Mattered and What’s Next

The breach of $3,700 on November 2 wasn't just another red candle—it marked the loss of a critical demand zone that had held firm for weeks. On the daily timeframe, ETH is now threatening to create a massive fair value gap between $3,839 and $3,654 if the current session closes in the red.

This imbalance reflects buyer exhaustion at previous local supports around $3,800 and $3,700. The On-Balance Volume (OBV) has been trending lower for weeks, confirming consistent distribution. Meanwhile, the Relative Strength Index (RSI) sits in bearish territory, signaling sustained downward momentum.

Zooming out, Ethereum's underperformance against Bitcoin adds another layer of concern. A recent analysis revealed that Bitcoin bulls are actively shorting ETH as a tactical play to enhance their BTC exposure. This relative weakness has pushed the ETH/BTC pair to multi-month lows, reinforcing the bearish narrative.

Where could prices head from here? The next major support sits at $3,400, a level that aligns with the 200-day exponential moving average and previous swing lows. A break below this could accelerate selling toward $2,900—a psychologically significant round number and the site of strong historical volume.

For bulls to regain control, ETH would need to reclaim $3,700 as support and push toward $4,000. Until then, the path of least resistance remains downward.

On-Chain Metrics: Spot Orders Tell a Mixed Story

Diving into spot market order flow reveals intense whale activity over the past two months. Average order sizes have spiked in both directions, indicating large players are actively trading ETH. However, the price action suggests that selling has dominated these flows.

In the last 30 days, only the aforementioned 10k–100k whale cohort has shown consistent net accumulation. Other groups, including those holding over 100,000 ETH, have either remained flat or reduced positions. This selective buying underscores a strategic bet on Ethereum's fundamentals rather than short-term speculation.

Broader supply distribution metrics reinforce the selling narrative. Address counts across nearly all balance tiers have declined since summer highs, signaling profit-taking and capitulation. Even the once-hyped digital asset treasury model—where companies like BitMine Immersion added ETH to balance sheets—has lost steam, with related stocks underperforming despite on-chain accumulation.

Ethereum’s Fundamental Outlook: Beyond the Price Action

While short-term technicals look grim, Ethereum's long-term thesis remains intact. The network continues to process billions in daily transaction volume, with Layer-2 solutions scaling throughput and reducing fees. The upcoming Pectra upgrade promises further improvements in validator efficiency and user experience.

Staking participation hovers near all-time highs, with over 28% of ETH supply locked in the beacon chain. This reduces circulating supply and creates a deflationary backdrop, especially as EIP-1559 continues burning fees during periods of network activity.

Institutional interest persists despite price weakness. Spot Ethereum ETFs, launched earlier this year, have seen steady inflows even during the recent dip. Major players like BlackRock and Fidelity are marketing ETH as a core portfolio holding alongside Bitcoin.

Risk Management Strategies for ETH Holders

Navigating this volatile period requires discipline. Here are practical steps for investors:

1. Set clear stop-losses below $3,400 to protect against further downside.
2. Dollar-cost average into positions during confirmed support tests, rather than chasing pumps.
3. Monitor whale cohorts via on-chain tools for signs of distribution from the 10k–100k group.
4. Hedge with BTC pairs if holding ETH as a relative value play.
5. Watch macro catalysts—Federal Reserve policy, regulatory clarity, and Bitcoin halving cycles all impact ETH.

Traders chasing short-term moves should prioritize risk-reward ratios above 1:3, given the prevailing bearish momentum. Scalpers can target bounces from $3,500–$3,600, but swings below $3,400 favor bears.

Comparative Analysis: ETH vs. Top Altcoins

Ethereum isn't alone in its struggles. Solana (SOL) and Binance Coin (BNB) have also shed value, though ETH's underperformance stands out. The altcoin market cap excluding BTC has retraced to levels last seen in early 2023, suggesting a broader sector rotation into Bitcoin.

That said, Ethereum maintains unique advantages:

• Decentralized finance (DeFi) dominance with over 60% of total value locked.
• NFT marketplace leadership via OpenSea and Blur.
• Enterprise adoption through partnerships with Microsoft, JPMorgan, and others.

These factors could accelerate ETH's recovery once risk appetite returns to crypto markets.

Final Thoughts: Patience Required in Bear Market

The whale accumulation is undoubtedly bullish for the medium to long term. Savvy investors are using this dip to build positions at prices not seen since the 2023 bear market lows. However, short-term pain appears likely with $3,400 and $2,900 in sight.

Market participants should avoid emotional decisions. The crypto cycle is intact—Bitcoin dominance is rising, altcoins are bleeding, and accumulation phases often precede explosive moves. Ethereum's fundamentals have never been stronger; the question is timing.

Stay vigilant, manage risk, and let the data guide your moves. The whales are buying for a reason—but they're also patient enough to wait for the storm to pass.

Robert Petrov publication: "Ethereum Price Plunges Below $3,700: Whale Buying Signals Hope Amid Bearish Storm" was written for 24crypto.news

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