Ethereum (ETH) has been facing significant market turbulence following a wave of sell-offs by large holders, or “whales.” In just the past week, these whales have offloaded over 440,000 ETH, causing a noticeable dip in Ethereum’s price. Currently, ETH is priced at $2,354.64, a drop of more than 5% in a single day. Despite this recent downturn, there are signs that Ethereum could be on the brink of a potential recovery.

The sell-off has raised considerable concern among investors, especially following massive transactions. For instance, one wallet sold 8,074 ETH at an average price of $2,431, while another transferred 10,000 ETH worth approximately $23.44 million to Binance in just two days. Such large-scale sales have led to increased market anxiety, but some experts believe Ethereum could soon bounce back.

Ethereum at a Critical Support Level

The price of Ethereum has been testing key support levels, particularly around $2,347.21. This level is crucial for the short-term price action. If Ethereum falls below this point, the next major support is seen at $2,272.32, which could increase selling pressure further. However, Ethereum has recently managed to bounce off this critical zone, suggesting that there may still be hope for a recovery.

For now, Ethereum faces resistance at the $2,479.31 mark. If the price manages to break above this level, it could signal a shift in momentum and the beginning of a potential reversal. Investors will be watching closely to see whether Ethereum can regain traction above this resistance.

Investor Sentiment: A Mixed Picture

Ethereum’s “in/out-of-the-money” data provides further insight into market sentiment. At present, 43.5% of Ethereum addresses are “in the money,” with the majority of these purchases made between $2,479.31 and $2,628.70. However, a significant portion—about 36.82%—of Ethereum addresses are “out of the money,” having bought between $2,479.31 and $3,024.48. These underwater positions could prompt further selling if the price drops below key levels, increasing pressure on the market.

The current sentiment is divided, with some investors holding on to losses. If Ethereum’s price continues to decline, this group may decide to exit, exacerbating the sell-off. However, this dynamic could also create a potential buying opportunity for those looking to enter the market at a lower price.

Ethereum’s Network Activity Remains Resilient

Despite the selling pressure, Ethereum’s network activity shows signs of resilience. Over the past 24 hours, active addresses have increased by 1%, with 21.28 million unique addresses interacting with the network. Additionally, transaction volumes have risen by nearly 1%, indicating that investors, while cautious, are still engaging with Ethereum.

This ongoing activity suggests that the fundamentals of Ethereum remain strong, even amidst short-term volatility. Retail investors continue to participate in the network, which is a positive sign for Ethereum’s long-term prospects.

What’s Next for Ethereum?

While Ethereum faces challenges due to significant whale activity and recent market fluctuations, there are encouraging signs that a recovery could be in store. The support at $2,347.21 may hold, offering a foundation for Ethereum to reverse its current downtrend. Additionally, strong network activity indicates that Ethereum’s fundamentals remain intact, which could bolster confidence if the market stabilizes.

Although recent events, such as the Bybit exchange hack, have added to market uncertainty, Ethereum’s resilience suggests that a rebound is possible. If Ethereum can break through key resistance levels, a more bullish market outlook could follow.