In recent developments, one entity procured approximately 13,080 $ETH, valued at around $30 million, during the same timeframe from Binance.
In a similar fashion, a previously inactive wallet recently exchanged $19.70 million in USDT for $ETH, highlighting an increase in whale activity.
Additionally, Bitmine has continued its acquisition of $ETH this week. The organization took advantage of market dips by purchasing 5,000 $ETH for approximately $11.22 million. They now control about 4.96% of the total supply.
This trend may indicate that larger investors recognize the significance of the altcoin’s trading price. As of now, the altcoin is priced around $2,200, which also represents the accumulation addresses’ realization price.
If the $2,200 support level is maintained, a rebound could occur; however, breaking below this point would increase the chances of a more substantial decline. Despite the notable accumulation, the delta between whales and retail investors remains negative, signaling that whales are holding a slight net short position.
For example, Wintermute, which has recorded an all-time gain of $222 million on Hyperliquid, initiated a short position totaling $73 million, with $ETH making up $26.40 million of that amount. A trend reversal may follow when the whales shift their positions to a bullish stance.
Currently, however, they continue to apply selling pressure.
Will $ETH Manage to Recover Amidst Market Weakness?
As whales maintain their positions around $2,237, the Fear & Greed Index indicates a score of 32 (Fear) at the time of reporting, suggesting a lack of market confidence.
Nevertheless, market activities could potentially influence this sentiment.
For instance, a whale who acquired the altcoin at $2,221 following a significant market drop appears to be sitting on a potential profit of $252K. This trader has successfully executed ten trades in a row, which may bolster optimism for future trends.
However, for market sentiment to change, $ETH bulls need to maintain the altcoin’s price above $2,220 or $2,200. Securing this support could pave the way to $2,425 for bullish traders. Conversely, if the price falls, the critical demand levels to watch would be $2,000 and $1,900.
In Summary
- Despite robust accumulation patterns, whales maintain a bearish overall position.
- Whales in profit could trigger a shift in market dynamics.