• Ethereum's recovery is a question of time
• Downtrend might end

In just two hours, an enigmatic Ethereum whale has surfaced on the network and acquired over 25,400 ETH. On-chain data shows that three recently established wallets, which are generally thought to be part of the same organization, spent 50.04 million DAI to buy 25,425 ETH at an average entry price of $1,968. 

Ethereum's recovery is a question of time

Ethereum is trying to recover one of its biggest technical resistance levels in months, so the coordinated accumulation occurs at a crucial time. When new wallets make purchases of this size, it is usually a sign of institutional involvement or sophisticated investors creating new positions instead of redistributing holdings. 

The timing indicates growing confidence that Ethereum may have established at least a medium-term bottom following its dramatic decline earlier this summer, even though the true owner is still unknown. Over the past few weeks, the technical picture has significantly improved. Ethereum has steadily risen above both the 20-day and 50-day exponential moving averages since its June collapse. 

After months of continuous selling pressure, those shorter-term averages have now turned upward, indicating an improving market structure and growing momentum. The current dynamic resistance is the 100-day EMA, which is located between $1,935 and $1,970. ETH is trading right around that level on the current chart, indicating that buyers are trying to flip an area that has previously rejected multiple recovery attempts. 

Downtrend might end

The bullish argument would be strengthened and more momentum traders would probably enter the market if a daily close above the moving average were successful. The next barrier is located close to $2,180, where Ethereum's longer-term downward trend is still defined by the declining 200-day EMA. 

Despite the recent recovery, the broader market structure still encourages caution until that level is broken. Recovering the 100-day EMA, however, would greatly increase the likelihood of a move toward that higher resistance. Additionally, momentum indicators continue to be positive. The RSI has risen into the mid-60s without entering overbought territory, indicating that buyers can still push prices higher before momentum becomes overly stretched. 

The whale accumulation gives Ethereum's comeback one more positive aspect. Instead of chasing fully formed uptrends, large investors frequently scale into positions during times of improving technical structure. 

It is unclear whether this purchase signals the start of more widespread institutional accumulation, but when paired with Ethereum's improving chart, it offers yet another indication that market sentiment is gradually changing. 

Whether buyers can hold above the 100-day EMA will be decided over the next few trading sessions. If they do, it becomes much more likely that the 200-day EMA at $2,180 will be reached. If not, buyers would probably try to defend the current recovery as Ethereum retreats once more toward support around the 50-day EMA near $1,750.

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