MARKET REBOUNDS: ETHEREUM WHALE PURCHASES GAIN MOMENTUM
Ethereum’s largest holders have returned to the market as crypto prices rebound following over $600 million in long liquidations on Monday.
Major Whale Purchases
On-chain data from Arkham Intelligence shows significant buying activity by Ethereum whales:
- 18,345 ETH (~$55 million) was purchased from BitGo on Tuesday.
- 4,597 ETH (~$13 million) was bought from Binance on Wednesday morning.
- 30,278 ETH (~$91 million) was acquired from Kraken roughly three hours later.
These large transactions suggest renewed confidence among major investors following recent market volatility.
Market Recovery Across Cryptos
The buying coincides with a broader recovery across the crypto market:
- Ethereum: up over 8%, trading at $3,015
- Bitcoin: up 7%
- Solana: jumped more than 10%
This rebound follows early December losses, indicating renewed buying pressure from both retail and institutional players.
Signals of Aggressive Market Buying
Additional metrics suggest strong demand:
- Taker buy volume in perpetual swaps spiked to $148.7 million on Tuesday.
- Futures cumulative volume delta (CVD) has risen relative to spot CVD, signaling new long positions being opened.
“If we see more DATs trade below mNAV, there will be some acquisitions with institutional investors swooping in for discounted Ethereum,” said Stephen Gregory, founder of crypto trading platform Vtrader.
Analyst Maarten Regterschot added that the high taker buy volume indicates a “strong signal of aggressive market buying.”
Outlook for Ethereum
Experts believe the recent correction may be over. Macro tailwinds and renewed institutional interest could drive Ethereum prices higher in the near term.
“I think the correction has run its course, and the macro tailwinds will push Ethereum back up,” Gregory noted.
Whales Load Up on Ethereum: $1.6B Bought as Market Stabilizes
Ethereum is attempting to stabilize after an extended decline that raised concerns about its recovery potential. For much of the month, ETH struggled to generate upward momentum, leaving investors uncertain about the next market move.
Early Signs of Strength
Recent shifts in investor behavior suggest that the tide may be turning. Declining selling pressure combined with aggressive whale accumulation is pointing to early signs of market strength.
Ethereum Whales Lead the Charge
Whale activity—large holders of Ethereum—has become a key driver of market sentiment. In the past four days, addresses holding 1 million to 10 million ETH have accumulated nearly 460,000 ETH, valued at over $1.6 billion.
This significant buying indicates strong confidence among major holders that Ethereum is positioned for a rebound. Historically, whale behavior often sets the tone for broader market direction, and this scale of accumulation suggests renewed optimism.
Why Whale Buying Matters?
The recent purchases highlight that whales view ETH’s discounted prices as an opportunity rather than a warning. Large acquisitions during market weakness often precede recovery phases, signaling that the market may be ready to reverse its downward trend.
Ethereum Shows Early Recovery Signs as Macro Momentum Improves
Ethereum’s market is showing signs of stabilization beyond whale accumulation. Recent metrics indicate that long-term holder (LTH) behavior is contributing to a slowdown in selling, which could support ETH’s recovery.
Long-Term Holder Selling Slows
The Age Consumed metric, which tracks the movement of older coins, is declining. Smaller spikes suggest that fewer long-term holders are selling, a crucial factor because historically, LTH selling has amplified market downturns.
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With reduced movement among dormant coins, Ethereum gains breathing room. When long-term holders retain their supply instead of selling, selling pressure eases, helping stabilize prices. Combined with whale accumulation, this creates a more resilient foundation for a potential rebound.
ETH Price Faces Key Resistance
At the time of writing, Ethereum is trading at $3,540 as it attempts to break above the $3,607 local resistance. ETH remains under a month-long downtrend, and this level is critical for bullish momentum to return.
If positive factors continue—like whale buying and reduced LTH selling—Ethereum could clear $3,607 and move toward $3,802. Surpassing this level would challenge the prevailing downtrend and may open the door to further gains.
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Key Support Levels to Watch
However, if ETH fails to breach $3,607, it may slide toward the $3,287 support level. Losing that floor could expose Ethereum to a deeper drop toward $3,131, which would invalidate the emerging bullish outlook.