Ethereum OG returns near $1,600 – Is ETH bottoming or trapped?

Ethereum gained nearly 5% over the past two days after plunging to the $1,600 region. Even so, the rebound looked more like a relief rally than a trend reversal. Several large traders continued positioning for further downside. How are whales reacting to current ETH price action? Despite signs of recovery across the market, whale activity reflected mixed sentiment. One notable trader remained firmly bearish. According to Lookonchain data, Pension-usdt.eth added another 10,000 ETH worth $16.8 million to an existing short position. That brought the total position to roughly 60,000 ETH worth $101 million. The trade was sitting on a floating profit of 22.9%, equivalent to more than $7.7 million. The trader has also maintained a 22-trade winning streak that generated over $45 million in gains. Given that track record, the position suggested some large traders still expected ETH to move lower, even as it approached a major demand zone. However, not every whale shared the same view. An Ethereum OG who previously sold both Bitcoin [BTC] and Ethereum [ETH] before the recent crash has started accumulating again, according to Onchain Lens. Before the decline, the whale sold 60,000 ETH worth $117 million and 9,442 wstETH valued at $24 million at an average price of $2,040. Following the crash, the same wallet bought back 60,088 ETH worth $95.3 million and 10,000 wstETH worth more than $21 million at an average price near $1,606. That move suggested that at least some long-term holders viewed current levels as attractive. Could ETH still drop before recovering? Even with liquidity stacked above $2,000, downside targets remained relevant. According to CoinGlass, more than $2 billion in leveraged long positions sat between $1,400 and $1,600. Such liquidity zones often attract price action, increasing the possibility of another move lower before a sustained recovery attempt. Is ETH nearing a major support zone? At press time, ETH traded near a key support area that previously marked a major cycle low before the rally toward $4,800. That proximity may help explain why some long-term holders resumed buying around $1,600. The decline followed a breakdown from a rising channel. At the same time, the Cumulative Volume Delta (CVD) reflected aggressive selling pressure. Meanwhile, MACD bars remained deeply negative. However, their fading intensity hinted that bearish momentum might be losing strength. If buying activity continues to strengthen, ETH could begin building a recovery from current levels. Otherwise, continued whale shorting and the large liquidity cluster below the price could pull the altcoin lower. Final Summary One Ethereum OG repurchased over 60,000 ETH after selling near local highs before the crash. More than $2 billion in leveraged long positions remained clustered below the current ETH price.