During the day of January 21, 2026, the massive Ethereum whale accumulation observed in recent hours reached 360 million dollars following a 13% drop, according to Ananda Banerjee. This massive movement, oriented toward absorbing supply at key support levels, suggests renewed confidence among large holders despite the recent price volatility and market pressure.
When observing the daily chart, it is clear that the asset is trading within a symmetrical triangle, currently testing the lower boundary of this technical structure. Although the price marked a lower low recently, the Relative Strength Index (RSI) formed a higher low, shaping a bullish divergence that could anticipate an imminent trend change.
Analysis of Glassnode data reveals a dense supply cluster located between 3,146 and 3,164 dollars, where approximately 3.44 million ETH were previously accumulated. Overcoming this obstacle is fundamental, as many investors are near their breakeven point, turning this range into a complex psychological and technical resistance zone.
The dance between massive supply and the conviction of large investors
This institutional buying phenomenon gains relevance considering that, while the value retreated, whale holdings increased to 103.71 million ETH. This cyclical behavior was already observed in mid-January, preceding a significant rebound that allowed cryptocurrencies to gain ground, validating the importance of tracking these high-volume wallet movements.
However, the smart money index remains below its signal line, indicating that informed traders prefer to wait for additional market confirmations. Historically, this indicator has preceded double-digit rallies, so its current lack of participation suggests a necessary prudence before committing capital to new long positions.
It is imperative to mention that the market is at a turning point, where the Ethereum whale accumulation in the current environment might not be enough. The lack of conviction from smart capital, which usually leads sustained movements, generates an atmosphere of uncertainty that will only dissipate after overcoming resistances.
The market structure reflects that, while whales are absorbing the selling pressure, retail volume remains notably cautious. This disparity between large holders and the rest of the market usually resolves with a violent movement, which is why monitoring momentum indicators remains a primary task.
Will the market be able to overcome the 3,160 dollar barrier soon?
Reclaiming the 3,050 dollar level, an old support zone with multiple touchpoints, would represent the first step toward stabilizing the prevailing bearish sentiment in the short term. Once this objective is achieved, the market will focus on 3,160 dollars, whose definitive breakout could unlock the momentum needed to seek new highs.
In a scenario of further weakness, losing the triangle support near 2,910 dollars would invalidate the recovery thesis, exposing the 2,610 dollar zone as the next price target. For now, the market waits for the Ethereum whale accumulation to finally translate into a resistance breakout that reactivates general investor interest.
Looking toward the near future, the asset’s ability to absorb latent supply will define if the current trend transforms into a bullish cycle. The interaction between technical support and capital flow will determine if investors regain confidence, with a close above critical levels being the catalyst expected by everyone.
