Ethereum has struggled to defend its $4,000 level since Monday after losing more than 11% of its value. The sudden decline underscored how quickly sentiment changed, with the bull losing control of momentum and the seller capitalized. The pullback comes after pushing upward pressures upwards for weeks to highs over weeks, but the latest selling suggests that the market has entered the corrective phase.
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Nevertheless, not all analysts are pessimistic. The move sees it as a healthy consolidation rather than the beginning of a deeper recession, claiming that Ethereum is simply digesting its previous profits before making another push higher. The key question is whether ETH can hold more than $4,000. This is a level that represents a psychological and technical battlefield for traders.
Adding a plot to the situation, Lookonchain reports that major institutions and liquidity providers such as Kraken, Galaxy Digital OTC, Bitgo and Falconx are sending huge amounts of ETH to a limited set of wallets. This unusual flow pattern causes speculation, and some suggest that these addresses may be linked to accumulation strategies or ETF-related demands.
Ethereum accumulation by major players
According to LookonChain, 11 wallets collectively received 295,861 ETH, about $1.19 billion, from major institutions and service providers such as Kraken, Galaxy Digital OTC, BITGO and FALCONX. This massive transfer comes as Ethereum is under intense pressure, and after a sharp revision at the beginning of the week, it’s a trade that’s slightly above the $4,000 mark.
The broader market is struggling with volatility and decline momentum, but these flows suggest that large players will be positioned for the coming months. The scale and concentration of these transfers indicate strategic accumulation rather than short-term speculation. Such wallets are often linked to accumulation addresses associated with entities that manage the liquidity of the facility’s products, or in some cases long term holders.
This behavior adds another layer to the current story of Ethereum. Despite the falling prices, deep pocket buyers are willing to absorb supply, appearing to signal confidence in the mid- to long-term outlook for Ethereum. Analysts argue that this type of activity often precedes a period of stabilization, and that potential recovery continues once sales pressure is eased.
For now, the spotlight is whether Ethereum can protect its $4,000 in support. If the Bulls manage to hold the line, this accumulation trend can raise the foundation of the next leg as market emotions improve.
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Test critical demand levels
Ethereum’s price action has entered a vulnerable phase as it shows that the Shart is struggling to maintain its $4,000 level after a sharp decline. The four-hour candle highlights a significant breakdown from the $4,200 zone, with current prices just above $4,030. The decline reflects heavy sales pressures in the market, coinciding with the recent 11% decline in ETH since Monday.
Moving averages clearly show bearish changes. ETH trades both the 50 and 200 EMAs below, indicating a loss of short-term momentum and the potential for extended downsides if the Bulls are unable to recover these levels quickly. The sudden rejection from $4,600 before September appears to be the top of the locals now, and continues to be highs that confirm the weak momentum.
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On the downside, $4,000 serves as psychological support, but a critical break below this level could expose ETH to a deep retracement of $3,800. On the other side, the rebound above the EMA is a key bull signal, suggesting new demand.
Dall-E special images, TradingView chart