Ethereum's Bear Market Deepens as Whales Hold Steady

Ethereum Market Dynamics Amid Bearish Trends

Whale Activity: Holding or Selling?

While the Ethereum market is experiencing a bearish trend, data reveals that specific whale groups are maintaining their holdings. The supply distribution chart indicates a significant portion of these large holders are not selling, thus demonstrating resilience amidst market volatility.

Market Outlook: Is a Reversal Imminent?

Currently, there is insufficient demand to reverse the prevailing downtrend. The aggressive selling pressure suggests a potential further decline in prices. However, the $2.7k support level might catalyze a temporary bounce to the $3k range.

Last week, Ethereum's price dropped by 10.64%, falling from $3,095 on November 17 to $2,765 by November 21. A minor recovery of 2.88% followed, emanating from a critical demand zone between $2.4k and $2.7k.

Whale Cohort Analysis

Despite the bearish sentiment, on-chain data indicates that wallets holding 10k-100k ETH have accumulated since September, although a slight decrease was noted at the start of November. Conversely, smaller wallet holders have been reducing their positions steadily since June.

The MVRV ratios highlight that both short-term and long-term holders are facing losses, the highest since June, reinforcing the bearish trend.

These observations suggest that while larger investors are accumulating Ethereum, the selling pressure mainly originates from smaller holder groups. This trend is corroborated by recent reports indicating increased whale buying activity.

While the 'smart money' appears to be betting on a recovery, caution is advised. A confirmed trend reversal is yet to occur, and investors should set clear criteria for their bullish strategies. A drop in ETH prices below $2.4k would indicate further bearish momentum.