• Ethereum takes a dive
• Is comeback even possible?

Even though Ethereum is still trading close to multi-month lows, investors should be aware of a significant whale's recent purchasing activity. A well-known Ethereum holder has returned to the market with tens of millions of dollars in new purchases following weeks of relentless selling pressure and declining market sentiment, raising questions about whether smart money recognizes value at current levels.

Ethereum takes a dive

Recent blockchain activity indicates that the whale known as EthereumOG has purchased 35,723 ETH at an average price of $1,563 over the last two days for about $55.8 million. The accumulation occurs just one week after the same investor sold 60,000 ETH valued at approximately $117.25 million and 9,442 wstETH valued at approximately $24 million close to the $2,040 level.

One noteworthy aspect of the transactions is their timing. After Ethereum saw a steep drop of more than 20 percent, the investor effectively increased exposure by exiting around $2,040 and re-entering around $1,563. Large holders typically act strategically rather than emotionally during times of increased volatility, which frequently draws attention from the market.

Is comeback even possible?

Despite the whale accumulation, Ethereum is still under pressure technically. ETH is trading significantly below its major moving averages, which include the 50-day, 100-day, and 200-day averages, according to the daily chart. The asset recently broke out of a descending consolidation pattern that had developed over the course of April and May, leading to a sharp sell-off in the direction of $1,500.

The severity of the recent decline is further highlighted by momentum indicators. The Relative Strength Index (RSI) for Ethereum has entered an oversold state, with readings falling below 20 before beginning to stabilize. Although they do not guarantee a trend reversal, such extremely oversold conditions have historically preceded relief rallies.

The combination of renewed whale accumulation and oversold technical conditions makes Ethereum's setup intriguing. Large investors frequently seek out times of panic selling to increase their positions, especially when market participants become overly pessimistic.

However, a single whale purchase is insufficient to validate a broader recovery. Before a significant trend shift can be identified, Ethereum must recover critical resistance levels close to its short-term moving averages. For the time being, the recent $55.8 million accumulation indicates that at least some significant market players think ETH offers appealing value following its most recent correction. If buying interest continues to grow, this could pave the way for a more robust recovery.

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