Ethereum (ETH) could face a short-term pullback before attempting a broader recovery, while whale accumulation signals growing interest in the asset. If buyers manage to defend key support levels, ETH may regain momentum and target higher levels, keeping the bullish outlook intact despite near-term correction risks.

At the time of writing, ETH is trading at $2,399.07 with a 24-hour trading volume of $15.96 billion and a market capitalization of $292.87 billion, according to CoinMarketCap. Despite the 1.36% loss over the last 24 hours, the ETH price structure and ongoing whale buying point to a potential bullish reversal ahead.

Ethereum Could Drop to $2,300 Before a $3,000 Rally

According to crypto analyst Michael van de Poppe, ETH could see another short-term correction as traders watch the $2,355 level for a potential liquidity sweep (X post). In technical analysis, a liquidity sweep refers to a brief move below a support level that triggers stop-loss orders before price reverses, a pattern traders often watch for signs of capitulation and subsequent recovery.

A move below this level may push ETH toward $2,300, which could become an initial accumulation zone. A deeper decline toward $2,200, however, would offer a more attractive entry for traders seeking stronger risk-reward opportunities.

Even in the face of this possible retracement, the overall view remains an optimistic one as long as ETH is able to sustain these support levels. Defending the $2,200-$2,300 region could create a platform for the next rise in value. In the case of a retracement followed by a recovery back above resistance levels, $3,000 is possible for ETH.

Mystery Whales Buy $126 Million in Ethereum

Data from Arkham highlighted that two new Ethereum whale wallets have withdrawn $126.25 million worth of ETH from the platforms FalconX and BitGo (X post). FalconX and BitGo are platforms commonly used by institutional and large-scale crypto participants, which lends weight to interpretations of these flows as institutional-grade activity rather than retail trading.

On-chain activity indicates that neither of these two wallets engaged in any prior transactions, raising questions about the identity of the buyer. The large money flows are indicative of possible institutional buying.

These transactions have attracted further interest given their similarity to earlier Ethereum purchases associated with BitMine. BitMine Immersion, an Ethereum treasury company, has been one of the most prominent corporate accumulators of ETH, with its chairman Tom Lee having publicly championed the strategy. This has led to speculation about a possible link between the two wallets and Lee, though there is no proof so far of such an association. Further transactions from the wallets in question will be tracked.

Whale accumulation has historically been read by on-chain analysts as a signal of conviction among large holders, since such purchases reduce the ETH available on exchanges. However, large wallet movements do not by themselves determine price direction, and current market action reflects that uncertainty.

Despite the bullish price predictions and whale activity, the ETH price is currently moving in a downward direction. The general trend across the crypto market has also turned cautious, as the BTC price has started to move lower. Ethereum, as the second-largest cryptocurrency by market capitalization, has frequently moved broadly in tandem with Bitcoin during risk-off phases across crypto markets.

What Happens Next for Ethereum?

Ethereum's next move could depend on how buyers react during a corrective phase in the $2,300-$2,200 support region.

If bulls manage to hold this region, a period of stability could follow, and bullish momentum could be regained. However, any breakout lower could result in further downward price action. Traders will also be watching whether the newly funded whale wallets make further on-chain moves, which could offer additional clues about the identity and intent behind the purchases.

This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.