Ethereum Whales Inject $900 Million Despite Bearish Crossover Risks — But Why?

Ethereum (ETH) price trades near $3,445, down 17.5% month-on-month but slightly up 3.5% over the past week. The short-term bounce hides a deeper concern — Ethereum’s chart shows two bearish crossovers forming. Yet, Ethereum whales have added nearly $900 million worth of ETH in just a few days. The question is: what are they seeing that most traders aren’t?

On the daily chart, Ethereum faces a potential shift in short-term momentum. The 50-day EMA is close to crossing under the 100-day EMA, a bearish signal often indicating a slowdown in price strength. (EMAs are averages that give more weight to recent prices, helping detect trend changes faster than regular moving averages.)

The last similar crossover occurred in early November, when the 20-day EMA moved below the 100-day EMA, leading ETH to drop nearly 22% in a week. Now, another warning signal is emerging as the 20-day EMA approaches the 200-day EMA. If selling intensifies after the first crossover, the second could follow, potentially accelerating downside pressure.

Despite looming bearish crossovers, Ethereum whales remain unfazed. On-chain data from Santiment shows that large wallets have increased their holdings from 101.44 million ETH on November 10 to 101.70 million ETH on November 12 — a gain of approximately 260,000 ETH, valued at around $900 million at current prices.

This indicates whales likely view these price dips as opportunities, anticipating a rebound once the short-term selling pressure subsides.

Whales’ confidence may stem from a hidden bullish divergence forming in Ethereum's momentum indicators. Between June 22 and November 4, ETH’s price made higher lows, while the Relative Strength Index (RSI), which measures buying and selling strength, recorded lower lows. This is known as a hidden bullish divergence, which usually suggests an ongoing uptrend despite apparent chart weakness.

If Ethereum can stay above its key support level of $3,333, it could aim for targets at $3,650, $3,994, and possibly $4,251 or $4,762 if the short-term bearish signals are invalidated.

However, a drop below $3,050 would confirm the downside risk of the EMA crossovers and challenge whales' confidence. For this scenario to play out, Ethereum would need a daily close below the critical $3,333 support level.

Currently, Ethereum’s chart reflects a unique clash — bearish signals forming while whales are evidently positioning for a potential rebound.