Ethereum Whales Accumulate as ETH Dips 4.9% — Traders See $4,220 as Key Reversal Zone

Whales Load Up on ETH Amid Market Dip

Ethereum whale accumulation has intensified since late September, signaling increased institutional participation. On‑chain data reveals that wallets holding large quantities of ETH added up to over 800,000 coins in a week. Combined whale holdings are now more than 27 million ETH, which reinforces a bullish long‑term trend.

These whales are taking coins out of exchanges and decreasing the supply in circulation, creating a potential price floor. Analysts state that this accumulation phase is similar to previous patterns that occurred before large Ethereum rallies. Such behavior generally reflects long‑term conviction, as opposed to speculative trading.

Whale purchasing dips while retail traders are nervous is often viewed as a high‑probability indicator of market bottom formation. Their confidence implies recovery expectations as macro conditions and liquidity return to normal.

On‑Chain Metrics Show Mixed Exchange Trends

While whales are adding aggressively, profit‑taking is visible between smaller traders. The exchange net position change of Ethereum has been increasing from -2.3 million on September 22 to -1.5 million on October 6, indicating fewer withdrawals and slightly more deposits.

This shows mild selling pressure as some investors lock in gains after recent highs. Still, the net outflow is negative, confirming that overall accumulation continues. According to Santiment data, large addresses are holding firm; wallets with more than 10,000 ETH have gone from 99.16 million to 99.26 million ETH in two days, which is $470 million. The divergent action between the whale accumulating and sharp profit‑taking points to a case for whaling, encouraging a long‑term bullish setup despite short‑term volatility.

Technical Analysis — Traders Eye $4,220 for a Potential Reversal

Ethereum's 12‑hour chart displays price action in a falling channel. The upper boundary around $4,700 is firm resistance, with the midline of $4,380 as short‑term support. The lower boundary is nearly at $3,780, where buyers stepped in repeatedly.

Source: X

A drop below $3,780 could further a correction, potentially targeting $3,720 as the next support. Conversely, keeping $4,220 as a floor might cause a bounce back to $4,500‑$4,600. RSI readings remain neutral and open for recovery. Analysts all agree that a daily close above $4,500 could confirm the next bullish phase.

Whales Spill Over to Ethereum L2 Tokens

The ongoing whale activity is creating optimism for Ethereum’s ecosystem and its growing layer‑2 network. Projects based on Ethereum, including MAGACOIN FINANCE, are now benefiting from this renewed momentum.

This projection stems from a rapid wave of whale participation that helped early funding rounds close ahead of schedule. Heavy accumulation by large investors has injected strong momentum, fueling excitement across trading communities. Analysts say the return of whales signals that institutional buyers may be positioning early before the next bull run.

Their aggressive entries have sparked FOMO among retail traders eager to capture projected returns. This effect has intensified interest in MAGACOIN FINANCE’s ecosystem, which analysts now call one of the most discussed new projects in circulation.

Market Outlook — Confidence Builds Despite Pullback

Ethereum’s short‑term decline has done little to weaken the broader trend of accumulation. Trading volume has climbed 11% to $44.8 billion, and ETH’s market cap remains near $526 billion. The token has gained 82% year‑over‑year, reinforcing its dominance among large‑cap altcoins.

The rising whale activity, coupled with renewed institutional inflows, supports Ethereum’s technical structure above $4,220. If this level holds, analysts expect a recovery toward $4,500 in the near term. Confidence is also spilling into Ethereum’s ecosystem, where MAGACOIN FINANCE continues to draw attention from early investors. As whale accumulation continues and investor sentiment stabilizes, Ethereum and projects like MAGACOIN FINANCE appear ready to lead the next stage of market recovery.