Ethereum Price Drop Triggers Active ETH Whale Buying, Reversal Soon?

Updated 3 hours ago by · 2 mins read

Ethereum price has dropped over 10% in the past week, slipping below $4,000, but analysts note RSI levels are oversold, hinting at a bottom formation.

Over the past week, Ethereum price has corrected another 10.35%, slipping under the crucial support of $4,000. Big market players and ETH whale entities see this correction as an opportunity to accumulate more. Crypto market experts also believe that the ETH bottom formation could be near, and so a reversal to the upside could follow soon.

Ethereum Price Reversal Ahead As RSI Slips Into Oversold Region

Popular crypto analyst Lark Davis recently noted that Ethereum price has fallen 20% over the past two weeks, pushing its Relative Strength Index (RSI) into the most oversold territory since April. The last time ETH reached such levels, it went on to rally 134% within two months.

The second-largest cryptocurrency has bounced from the $3,800–$3,900 range. Davis noted that this is a key support level that ETH price must hold to maintain a bullish outlook. Market watchers suggest that if broader crypto sentiment improves in the fourth quarter, this oversold signal could pave the way for Ethereum to target the $7,000–$8,000 range.

ETH RSI in oversold territory | Source: TradingView

Furthermore, popular crypto analyst Michael van de Poppe stated that September has been a historically weak month for ETH and the crypto market. However, he still expects a good Q4 ahead, followed by a strong Q1 2026. In a message on X, Poppe wrote:

“The markets always have a correction in September / October. Historically, Q4 and Q1 are a great period for altcoins. September is a terrible month, and that’s what we’ve seen with $ETH, it’s down nearly 10%. Q4 is almost always positive, Q1 is the best quarter in the history”.

As of now, ETH is trading at $4,006. Failing to hold this crucial support could trigger a downside further to $3,600. The MVRV price bands indicate that an ETH price drop to $ 2,750 cannot be ruled out.

ETH Whales Accumulate Over $1.7B from Major Exchanges

Blockchain analytics firm Lookonchain reported that large Ethereum whales have accumulated 431,018 ETH, valued at approximately $1.73 billion, over the past three days.

The inflows were distributed across 16 wallets from major platforms, including Kraken, Galaxy Digital, BitGo, FalconX, and OKX. This signals continued accumulation by whales despite recent market volatility.

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