Crypto Analyst Warns: Don't Chase Ethereum Just Yet Despite Massive Whale Accumulation

Ethereum has made a strong move lately since the ETH price moved past the $2,600 mark after weeks of range-bound trading. However, some analysts are sounding alarm of a potential pullback.

Crypto analyst warns: Don't chase Ethereum just yet despite massive whale accumulation

Ethereum has been making a strong move lately since the ETH price managed to break past the $2,600 mark after weeks of range-bound trading. However, some analysts are already warning of a potential pullback.

Despite bullish signals from large holders and technical indicators, on-chain and price data suggest that Ethereum may not be ready for a sustained breakout just yet. In fact, a pullback might be coming before any move toward higher targets.

Crypto Patel Predicts an Ethereum Pullback Before the Next Rally

Well-known trader and analyst Crypto Patel shared a chart highlighting the recent rejection Ethereum faced near the $2,500 to $2,800 range. This area is marked by both a Fair Value Gap (FVG) and a bearish order block, zones that usually act as strong resistance.

ETH briefly pushed into that region, but the price was quickly rejected, which Patel interprets as the start of a correction phase. According to his analysis, the Ethereum price could drop into the $1,930 to $2,100 range over the coming weeks.

This level isn't just any support; it aligns with another FVG and sits just above a major bullish order block around $1,810. Patel views this zone as a high-probability re-entry area, especially if Ethereum shows signs of stabilizing there. His forecast includes a possible bounce from that region that could set the stage for a much larger move, potentially taking ETH toward $4,000 or even $5,000 later this year.

"The $1,810–$2,100 is a strong Fib level and has FVG. This zone is also holding a major bullish order block. High probability re-entry if we get signs of stabilization at this zone."

The Ethereum chart shows a projected path where price pulls back slowly into that demand zone, consolidates, and then begins a strong upward trend. Patel explains that the key to this scenario playing out is whether demand steps in at the $1,810 to $2,100 range. If that level holds, he believes the next leg up could come fast and with force.

"If buyers hold this lower zone, the next move could be fast and furious. Get ready for a potential 2x from here if we see signs of stabilization at $1,810."

The trader's analysis aligns with the prevailing technical outlook, which anticipates a retest of key Fib levels and Fibonacci clusters, setting the stage for a continuation of the uptrend toward the $3,000 to $3,500 range.

Ali Martinez Spots Whale Activity Behind the Scenes

While the technical indicators hint at a possible short-term dip, on-chain data is weaving a different tale of persistent accumulation by large Ethereum holders.

CryptoQuant data shared by Ali Martinez reveals that whales, defined as wallets holding 10,000 to 100,000 ETH, have been accumulating steadily, adding over 450,000 ETH to their holdings in the past month alone. Their combined balance rose from around 16.3 million to nearly 16.8 million ETH.

This pattern is significant because historical trends suggest that periods of large-scale accumulation usually precede major price rallies. These holders are often regarded as "smart money" due to their early and decisive actions.

In this case, the whale buying activity began even before the recent price spike, which might indicate that large investors anticipated the move and positioned themselves accordingly.

Martinez's chart showcases a clear increase in whale holdings beginning in early April and continuing steadily through May 13, when Ethereum hit $2,679. It also shows that the increase in whale activity directly preceded the sharp rise in ETH price, further highlighting the potential impact of these actions.

"Whales have accumulated over 450,000 #Ethereum $ETH in the past month!"

The analyst's analysis in the post-interview segment focused on the implications of this accumulation for retail traders.

Key takeaways from Ali’s analysis

The analysis highlights a key factor that could influence the market's direction in the coming weeks. While retail traders may just be starting to get interested in Ethereum now, the whales have already made their move, which could be a sign of growing institutional confidence in the cryptocurrency's long-term outlook.

This analysis provides valuable insights into the market dynamics at play and could help traders make more informed decisions in the current market climate.

As always, traders should use technical and fundamental analysis to form their own trading decisions and manage their own risk appetite.

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