Ethereum Price Dips Below $3,400 as Whale Accumulation Signals Potential Reversal

Ethereum (ETH) price dropped 3.3% in the past 24 hours to $3,331, falling below the key $3,400 support level, according to CoinDesk Research’s technical analysis. Despite the sharp decline, on-chain data showed that large investors—or “whales”—were actively accumulating ETH, suggesting confidence in a potential rebound.

ETH’s recent performance reflects a bearish structure, with sellers overpowering buyers near the $3,415 mark, triggering a steep breakdown. Trading volume surged significantly during the selloff, confirming that the decline was driven by large-scale transactions rather than retail panic. At 15:00 UTC on November 6, Ethereum recorded its heaviest selling activity, with volume spiking 145% above the daily average.

Interestingly, whale wallets accumulated 394,682 ETH—worth about $1.37 billion—during the downturn. Most of this accumulation occurred between $3,247 and $3,515, highlighting that institutional buyers viewed the dip as a strategic buying opportunity. Analysts interpret this as a potential early sign of price stabilization or even a short-term reversal.

Intraday volatility remained high, with a $207 swing representing a 6% range. ETH struggled to recover above $3,350 resistance, and its current lower-high pattern from the $3,920 cycle peak indicates technical weakness. However, growing whale activity could counterbalance bearish momentum if the $3,247 support zone holds firm.

From a fundamentals standpoint, daily active Ethereum addresses are down 24% since mid-August, but the network continues to demonstrate strength with a record 24,192 transactions per second—showing robust blockchain performance despite reduced activity.

Looking forward, traders are closely watching the $3,247 support level. A breakdown toward $3,200 may trigger further selling, while a rebound above $3,480 could invalidate the bearish setup and reignite upward momentum.