Ether Drops Sharply, Yet $300M Whale Buy Sparks Talk of Bullish Setup

Whale Buys $300M in Ether as ETH Drops 10% — Bullish Divergence or Dead Cat Bounce?

Ether (ETH) just logged its worst weekly performance in over a month — but one whale is betting big on the dip.

Ethereum’s native asset dropped nearly 10% this week, ending a five-week winning streak and dipping below $3,400, according to CoinDesk data. The pullback coincided with broader weakness across risk assets, triggered by fresh macroeconomic concerns and de-risking activity across crypto markets.

Yet in the midst of the decline, one wallet made waves.

On-chain data from Arkham Intelligence shows a single large entity acquired roughly $300 million worth of ETH during the selloff — a high-conviction move that stands in stark contrast to the prevailing bearish trend.

The timing of the purchase has fueled speculation of bullish divergence, where price action contradicts underlying accumulation behavior. While ETH’s chart shows fading upside momentum and potential exhaustion following its multi-week rally, the whale’s aggressive buying hints at confidence in longer-term strength.

“This isn’t retail FOMO,” said one analyst. “It’s a strategic accumulation during uncertainty — the kind of signal that often precedes a reversal.”

The broader backdrop remains uncertain. Friday’s weak U.S. jobs report and a strengthening dollar have cast a shadow over risk assets. While Bitcoin (BTC) weathered the storm better — down just 4.5% on the week — ETH’s sharper drawdown may reflect shifting sentiment, as previously flagged by options market data.

Still, the whale’s $300M move complicates the bearish narrative.

Whether this is smart money front-running a rebound or simply a long-term position absorbed during weakness, the divergence between price and behavior could prove pivotal in the days ahead.

Traders now watch whether ETH can hold support near the $3,400 level — or if this bounce attempt gives way to deeper losses.