Ethereum Holds Above $2,400 as Whales Fuel Bullish Momentum

• ETH holds above $2.4K after breakout, signaling bullish momentum despite brief correction.
• Whale Abraxas Capital buys 211,030 ETH, now holding $477M worth, boosting investor confidence.
• Elevated volume and key support zone at $2,400 point to ongoing consolidation, not a reversal.

Ethereum is showing renewed strength after a sharp rally lifted prices from $1,800 to nearly $2,700 within days. This rally marked a breakout from a multi-month downtrend channel, signaling a shift in market structure. Although the price has cooled slightly, Ethereum remains firmly above key support levels.

At the press time, ETH was trading at $2,619, up 6.42% in the last 24 hrs. It is maintaining above the 50-day and the 100-day moving averages. The 200-day EMA, around $2,703, is the next major barrier that Ethereum must overcome to maintain the bullish trend. The price touched $2,725 briefly on May 13 before pulling back. This could have been because of profit-taking. However, the trading volume is still high, indicating the increased interest and high integrity of buyers.

A demand zone has been formed at around $2,400 and $2,500, which served as resistance during the breakout. This region has now become a very important support level that may be capable of forming the basis for further advancement. Technically, indicators are still in the bullish territory with moving averages and price holding above the crucial breakout level. A daily close above $2,700 could ascertain further movement to the $3,000 level.

For now, maintaining a price above $2,400 is essential. If ETH falls below this range, it could revisit the 100-day moving average at $2,091. Such a move would test the strength of the recent uptrend. However, the overall structure remains bullish, and the consolidation appears healthy within the context of the breakout. Ethereum’s behavior continues to attract renewed attention from investors and analysts.

Related: Ethereum Charts Signal Breakout Amid Ongoing Liquidations

Whale Accumulation Signals Confidence

In addition to favorable price action, whale activity is also sending strong signals. On May 13, Abraxas Capital, a large institutional investor, purchased 33,482 ETH worth approximately $84.7 million. This aggressive accumulation adds to a six-day buying spree by Abraxas, totaling around 211,030 ETH and worth $477.6 million.

This kind of activity is typically seen as a vote of confidence in Ethereum’s long-term potential. Institutions tend to accumulate assets during strategic periods, often before major price moves. The timing of this buying aligns closely with Ethereum’s breakout from its downtrend.

Investor sentiment is improving alongside this whale accumulation. The combination of on-chain engagement, price resilience, and institutions’ interest is building a favourable outlook. Although short-term volatility is likely to persist, the fundamentals of the recovery of Ethereum are strengthening. The market is now waiting for more confirmation as ETH tests its next important resistance at $2,700.

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