Ethereum falls below $2,200: Assessing ETH’s odds of recovery

• Ethereum dropped 22% regardless of Eric Trump’s endorsement and growing whale exercise.
• Whale shopping for spiked as giant buyers positioned themselves within the face of a downtrend.

On the 4th of February 2025, Eric Trump made waves by endorsing Ethereum’s [ETH] on his X (previously Twitter) account, urging followers to purchase Ethereum.

Nonetheless, since then, Ethereum’s worth has dropped massively, by 22%. Regardless of this decline, a surge in whale exercise has been recorded, with 110,000 ETH being collected in simply 72 hours.

Amid combined alerts, one does surprise: Are giant buyers positioning themselves for a rebound, or is the market nonetheless on a downward trajectory?

Eric Trump’s endorsement and subsequent decline

Supply: X

The preliminary response to Trump’s endorsement was adopted by a quick worth surge, however the rally shortly fizzled out. Since then, Ethereum’s worth has dropped 22%, resulting in questions concerning the lasting impression of his endorsement.

Supply: X

A number of elements have contributed to the worth decline. A major $1.5 billion hack of the Bybit alternate on the twenty fifth of February undermined investor confidence, triggering a broader market selloff.

Moreover, fading euphoria following President Donald Trump’s election, coupled with unmet expectations for a pro-crypto regulatory framework, has dampened market sentiment.

International financial uncertainties have additionally pressured Ethereum’s worth downward.

Whale accumulation: A vote of confidence or a tactical play?

Regardless of Ethereum’s 22% drop, whale exercise has surged, with 110,000 ETH collected in simply 72 hours. Santiment information highlights a pointy enhance in whale transactions.

This means giant buyers could also be positioning themselves for a rebound or capitalizing on discounted costs.

Supply: Santiment

Traditionally, comparable accumulation phases have been adopted by robust recoveries, however not all the time.

As an example, heavy whale exercise in late December 2024 coincided with ETH’s peak, and mid-January noticed an analogous accumulation, which aligned with a quick bounce.

If ETH holds the $2,100–$2,135 vary, this might reinforce bullish sentiment. Nonetheless, a sustained break beneath this degree may counsel that whales are securing liquidity earlier than a deeper correction.

Ethereum: Whale confidence vs. bearish momentum

Ethereum’s oversold RSI at 38.90 and a deepening MACD bearish crossover point out a chronic downtrend. The 50-day SMA at $2,929 stays considerably above Ethereum’s present worth of $2,109, reinforcing bearish stress.

If whales are shopping for to front-run a restoration, reclaiming the $2,200–$2,300 vary may validate a short-term bounce.

Supply: TradingView

Retail buyers ought to stay cautious. If ETH fails to carry key help, the following main demand zone lies round $1,900–$2,000.

Whale shopping for isn’t all the time a definitive bullish sign, particularly in a market-wide downturn. Retail buyers ought to look ahead to affirmation of a development reversal earlier than following whale sentiment.