The price of Ethereum is currently navigating a crucial threshold, requiring a 7% increase above $3,122 to validate a potential rebound. Despite the recent accumulation of approximately 100,000 ETH by large holders, valued at nearly $290 million, the price has remained relatively stagnant, trading around $2,930.
This notable whale activity indicates a significant buying trend among on-chain whales, institutions, and corporate wallets, yet it has not translated into upward price movement. The disparity between robust buying and price stability highlights the critical nature of the current market setup.
Data from Santiment reveals that Ethereum whales have increased their holdings from 100.31 million ETH to 100.41 million ETH since December 20, a clear sign of accumulation. What is particularly noteworthy is that this buying spree occurred without a corresponding price rally, often suggesting that these large players are positioning themselves ahead of a market shift.
Further confirmation of this trend comes from Lookonchain data, which shows that Fasanara Capital acquired 6,569 ETH worth about $19.7 million over a span of two days. Rather than simply holding these assets, the firm deposited them into Morpho, using the ETH as collateral to borrow $13 million in USDC, which was subsequently reinvested into Ethereum. Such leveraged buying is typically seen as a bullish indicator.
Additional insights from Onchain Lens reveal that Bitmine, associated with Tom Lee, has added 29,463 ETH worth approximately $88.2 million across various wallets. Notably, one wallet received 18,454 ETH valued at $55.6 million, while another withdrew 11,009 ETH worth $33.1 million from Kraken. These exchange outflows are often indicative of a desire to hold rather than sell.
Bitmine”s continuous accumulation reflects a broader trend among institutional investors, who typically engage in buying during quieter market conditions rather than during price spikes. The ongoing accumulation suggests these players are preparing for an upward price movement, rather than chasing immediate gains.
Moreover, technical analysis of Ethereum”s price chart illustrates that selling pressure may be diminishing. The Relative Strength Index (RSI) shows a bullish divergence, indicating that while prices made lower lows between November 4 and December 18, the RSI recorded higher lows during the same period. This pattern often signifies that selling momentum is subsiding, even if immediate price increases are not evident.
Despite these signs of accumulation and a potential weakening of selling pressure, Ethereum”s price has yet to confirm a bullish reversal. For a definitive upward move, Ethereum must exceed the $3,122 mark. If this level is surpassed, the next critical resistance points to monitor will be $3,436 and $3,690, where previous selling pressure has emerged.
Conversely, if Ethereum”s price declines below $2,615, it would cast doubt on the current bullish setup, suggesting that whales may have entered the market prematurely and that a further consolidation phase could be necessary.
