Ethereum Whales Accumulate 5,970 ETH, Strengthening Case for $2,400 Move

Three long-dormant Ethereum wallets, inactive for nearly four years and likely controlled by a single entity, have re-entered the market amid a recent price dip.

As of Wednesday, February 4, on-chain data from Lookonchain shows the wallets became active around eight hours earlier, signaling renewed accumulation interest as Ethereum traded near key support levels during broader market uncertainty.

Source: Lookonchain X Post

Combined, these wallets spent about $13.1 million to buy 5,970 ETH at an average of $2,195, implying that these wallets were buying the dip. 

Such a move from previously inactive accounts tends to attract market attention, as it can temporarily prop up the market and affect market sentiment, though it does not necessarily mean a sustained rally will follow.

Also Read: Vitalik Buterin Reveals Ethereum Layer 2’s New Role

Ethereum Holds $2,000 Support With $2,400 in Sight

Following this on-chain milestone, traders’ attention has now shifted to ETH price action. Crypto analyst Ted highlighted on Wednesday, February 4, that ETH showed signs of short-term stability on Tuesday after successfully holding above the critical $2,000 support zone. 

This level is closely monitored by both traders and long-term investors. The defense of this psychological threshold helped prevent a deeper pullback, despite cautious sentiment across the broader crypto market.

Source: Ted X Post

Ted believes that the price action above $2,000 could be an indication that the selling pressure is being eased. However, the price action will most probably be dependent on the Ethereum price being able to move past the $2,400 resistance area. 

Until then, the price of ETH is expected to continue consolidating in the $2,000 to $2,400 area, with $2,000 being the near-term support area and $2,400 being the near-term resistance area.

Technical Outlook Points to Bearish Dominance

As per the TradingView data, as of Wednesday, February 4, the weekly price chart of ETH indicates the broader corrective cycle that the token is in after failing to sustain the price above the $3,500-$3,600 price zone in the earlier stages of the cycle. Currently, the price of ETH is trading at $2,259, just above the $2,200 price level.

Source: TradingView

The repeated occurrence of lower highs indicates diminishing bullish momentum, while the presence of a big bearish candle in recent times indicates increasing selling pressures and cautious market sentiments. 

Momentum indicators also support this notion, as the MACD continues to trade below the zero line, indicating continued downward pressures, even as the momentum starts to slow down and flatten. The RSI continues to trade at 34, which is close to the oversold region.

Also Read: Ethereum (ETH) Technical Setup Points to $2,400 Target Amid Market Volatility