The sudden Ethereum price drop to 2,900 dollars this Wednesday has prompted large investors to accumulate approximately three hundred and sixty million dollars. According to analyst Ananda Banerjee, this move seeks to take advantage of the 13% retreat recorded recently, while the market awaits clear signals of a sustained recovery today.
During the last twenty-four hours, whale holdings increased aggressively, rising from 103.42 million to 103.71 million ETH quite suddenly in the market. Observing that accumulation volume reflects a very solid conviction, it is clear that large holders are absorbing the available supply while price tests critical levels of global support.
Nonetheless, the asset is currently trading inside a symmetrical triangle pattern, where sellers have rejected any significant bullish breakout attempt throughout January. Using the RSI, a bullish divergence suggesting a weakness in momentum is observed, even as the price remains under constant, challenging, and highly volatile pressure.
The supply wall slowing down the organic recovery of the digital asset
On the other hand, Glassnode data identifies a dense supply cluster located between 3,146 and 3,164 dollars, acting as an impassable psychological resistance. Since millions of coins were purchased in this range, many investors tend to sell upon reaching breakeven, which generates a natural friction that prevents a rapid advance.
Likewise, the smart money index remains below its signal line, reflecting a persistent distrust among the most informed traders in the financial sector today. Unlike the December rallies, where this indicator anticipated double-digit gains with absolute precision, the current situation demands an additional confirmation before validating a definitive reversal.
Will Ethereum be able to overcome the resistance zone to attract smart money?
Therefore, reclaiming the 3,050 dollar support level is presented as the first fundamental step to stabilize global investor sentiment. In this way, a clear move above 3,160 dollars would allow bullish momentum to attract institutional capital again, which seeks tangible evidence of technical strength before investing in blockchain technology during this month.
Finally, if the asset fails to hold the triangle support at 2,910 dollars, the risk of a fall toward 2,610 dollars would increase drastically tomorrow. Thus, the battle between whale accumulation and supply resistance will define if Ethereum can stage a parabolic rebound this month, consolidating its position as the undisputed global leading asset.
