The price of Ethereum is currently hovering around $2,930, facing a crucial threshold as significant whale buying activity unfolds. Notably, large holders, including on-chain whales, institutions, and corporate wallets, have been quietly accumulating ETH, but this has not yet translated into upward price movement.
To confirm a potential rebound, the price must rise at least 7% to breach the $3,122 mark. Despite the accumulation of approximately 100,000 ETH worth nearly $290 million, the price action has remained flat.
Data from Santiment reveals that Ethereum whales increased their holdings from 100.31 million ETH to 100.41 million ETH since December 20. This accumulation is significant, especially considering it occurred while the market price did not respond positively.
One noteworthy instance of whale activity involved Fasanara Capital, which acquired 6,569 ETH for about $19.7 million over a two-day period. In a strategic move, the firm deposited the ETH into Morpho, utilized it as collateral, and subsequently borrowed $13 million in USDC to purchase more Ethereum. This type of leveraged buying typically indicates strong bullish sentiment.
Further analysis from Lookonchain shows that Bitmine has also been actively accumulating. The firm added 29,463 ETH, valued at around $88.2 million, across several wallets. Notably, one wallet received 18,454 ETH worth $55.6 million, while another withdrew 11,009 ETH, approximately $33.1 million, from the Kraken exchange. Such exchange outflows often signal a longer-term holding strategy rather than immediate selling.
Institutional buying behavior adds further weight to this narrative. Bitmine, associated with Tom Lee, has shown a consistent increase in Ethereum holdings over recent weeks, now totaling over 4.06 million ETH. This trend underscores a strategy where institutional investors are accumulating during quieter market phases rather than pursuing price spikes.
Despite the significant accumulation by whales, the price of Ethereum has not yet confirmed a bullish reversal. The critical resistance level remains at $3,122. If Ethereum can successfully surpass this price point, the next key levels to monitor would be $3,436 and $3,690, both of which have previously acted as barriers to upward movement.
However, a drop below $2,615 would present a risk, suggesting that the whales may have entered the market prematurely and that further time may be needed for a robust recovery.
In conclusion, while the substantial whale activity indicates a growing interest in Ethereum, the market remains in a delicate balance, necessitating a decisive move above resistance levels to validate the bullish sentiment.
