Ethereum (ETH) price prediction: $3822 is the key support, Whale dumping, medium "sharks" buying the dip.

Ethereum (ETH) price has fallen by 13% from a recent high of over $4,400 and is currently testing the critical support level around $3,865. Despite this decline triggering a massive liquidation wave of up to $1.06 billion (of which $409 million is ETH), the market dynamics are undergoing a significant shift. Large whales are reducing their holdings, while medium-sized shark investors holding between 10,000 and 100,000 ETH are actively accumulating, dominating the current buying pressure. This shift in ownership structure indicates that funds and private investment firms are replacing large institutions as the main force in the ETH market.

Ownership Structure Shift: Medium "Whale" Investors Take Over the Market

Market analysis shows that the wealth distribution pattern of Ethereum is undergoing significant changes. Despite the overall price decline, new accumulation forces are on the rise.

· "Shark" accumulation dominates: Joao Wedson, founder and CEO of Alphractal, pointed out that large whales are reducing their holdings, while medium-sized "sharks" (addresses holding 10,000 to 100,000 ETH) are increasing their accumulation and market share.

· Asset centralization signal: The Gini coefficient, which measures inequality, has risen again after several months of decline. This indicates that ETH ownership is consolidating among wealthy addresses, but this centralization mainly occurs among medium-sized entities rather than the largest holders.

· Whale exit: This usually represents exchanges, large institutional funds, or former miners' whales continuously selling off their holdings. Their exit creates space for "sharks" to dominate the current accumulation process.

Technical Analysis: The macro trend is solid, facing consolidation in the short term.

(Source: TradingView)

Despite the short-term price pullback, Ethereum still shows a stable macro upward trend on a technical level.

· Key Moving Average Support: Ethereum is currently trading near $3,865, still holding above the key 20-day Exponential Moving Average (EMA) at $3,653. The arrangement of the longer-term 50 EMA ($3,162), 100 EMA ($2,874), and 200 EMA ($2,483) further confirms its macro long-term bullish trend.

· Short-term mixed signals: Technical indicators show mixed signals in recent directions. The MACD histogram remains positive but is slowing down, and the Chaikin Oscillator is declining. The RSI may be between 60-65, indicating that it has entered the overbought territory before the recent pullback. These signals suggest that the market may consolidate before further upward movement.

· Key trading levels: Analyst Ted Pillows believes that $3,822 is a key support level, and a fall below this could test $3,700-$3,750. Resistance is between $3,960 and $4,000. Pillows refers to the current area as the "buy zone."

Market Outlook and Institutional Sentiment

The current market is caught in a contradiction between structural resetting after liquidation and the outflow of institutional funds, but analysts generally believe that the current price offers potential opportunities.

· Large-scale liquidation: In the past 24 hours, the total liquidation amount in the cryptocurrency market reached $1.06 billion, with Ethereum leading at $409 million. The largest single liquidation occurred on Hyperliquid, where a $29.12 million ETH-USD order was closed. This marks the clearing of excessive leverage in the market.

· Institutional sentiment is cautious: Spot Ethereum ETFs have seen outflows of over $250 million recently, with Fidelity's FETH seeing outflows of $158 million, indicating that institutional investors are remaining cautious at the current price levels.

· Buying opportunity: Analyst Michael van de Poppe emphasizes that the gap between the current price and the 20-day EMA is narrowing, which may indicate that the pullback is nearing its bottom, providing investors with a potential buying opportunity.

· Key targets and support: Short-term resistance is between 4,450 and 4,500 USD, while the support at 3,650 USD is crucial for maintaining short-term stability. If the support holds and buying returns, ETH is expected to test 4,500 USD and challenge the 5,000-5,200 USD range. A fall below 3,162 USD could potentially lead to further declines to 2,874 USD or even 2,500 USD.

Conclusion

Ethereum is currently undergoing a wealth redistribution dominated by medium-sized investors. Despite the short-term pressure brought by large-scale leverage liquidations and institutional fund outflows, the continuous accumulation behavior of "whales" and the technical signals of prices remaining above key long-term moving averages indicate that the current market pullback is more of a healthy consolidation and a cleaning of excessive leverage. As the market approaches key support levels like the 20-day EMA, many analysts believe that the current price range offers a favorable entry point for long-term investment. The market's focus will be on whether the support at $3,650 can hold, which will determine if ETH continues to consolidate or reinitiate a push towards $4,500 in the coming weeks.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The encryption market is highly volatile, and investors should make cautious decisions.