Ethereum OGs return near $1,600 as ETH whale shorts fight demand
Ethereum (ETH) rebounded nearly 5% in two days after a plunge to the $1,600 area, but the rally looks more like a relief move than a clear trend reversal. Whale signals remain mixed.
On-chain data shows one highly active trader, Pension-usdt.eth, added 10,000 ETH (about $16.8M) to an existing short. The position totals roughly 60,000 ETH (~$101M) and is in a reported floating profit of 22.9% (over $7.7M). Despite a long winning streak, the new add suggests further downside risk for ETH, even as price nears a potential demand zone.
At the same time, an “Ethereum OG” wallet resumed accumulation. After selling 60,000 ETH (~$117M) before the crash, the wallet bought back 60,088 ETH (~$95.3M) and 10,000 wstETH (over $21M) at an average near $1,606. This indicates at least some long-term holders see $1,600 as attractive.
Market structure still leaves room for a deeper dip. CoinGlass data cites more than $2B of leveraged long positions clustered between $1,400 and $1,600, a liquidity pool that can fuel a further sell-off before a sustained recovery attempt.
Technically, ETH is trading near a prior cycle-low support area that helped power a rally toward $4,800. Yet CVD showed aggressive selling and MACD remains deeply negative, though momentum may be fading. If whale buying strengthens, ETH could build a recovery; if shorts persist, the liquidity cluster below may pull price lower again.
Neutral
ETH near $1,600 is seeing conflicting whale signals: one account added to an ETH short (bearish) while another accumulated after selling earlier (supportive). This mix typically produces a choppy market where price can bounce but downside volatility remains.
The key trading risk is the large leveraged long cluster ($2B+) between $1,400 and $1,600. In similar past liquidations/flushes, price often moves through the liquidity pool to trigger stops and then reverses once selling pressure is exhausted. Therefore, the near-term path is uncertain: ETH could dip further before any sustained recovery.
Longer-term, the article highlights that $1,600 aligns with a prior cycle-low support that previously powered a major rally toward $4,800. That historical demand zone can attract dip-buyers and reduce the probability of a straight breakdown—unless whale shorting intensifies or technical sell signals (CVD/MACD) re-accelerate.