On-chain Night Recap: Whale Position Switching and Fund Rotation in Crypto

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The crypto market has seen active whale movement and fund rotation in recent trading sessions, with Ethereum positioning itself for a potential upward trend. On-chain data indicates large investors are shifting positions, while market liquidity and sentiment continue to evolve. Simultaneously, the broader crypto ecosystem is observing a resurgence in meme coin activity driven by the Solana network.

The Senate Banking Committee has postponed its markup of the crypto market-structure bill as Coinbase, a key proponent of the legislation, withdrew support for the current version. Committee Chair Tim Scott cited ongoing negotiations between stakeholders and stated the goal of delivering clear regulatory guidelines. Coinbase CEO Brian Armstrong highlighted unresolved issues, particularly around blockchain-based equities and rewards for stablecoin holders.

Ethereum (ETH) has shown bullish momentum, with recent inflows into ETFs and staking driving prices above $3,300. The network saw $228 million in liquidations over the past 24 hours, largely due to short liquidations, indicating a shift in market sentiment. ETH is currently approaching the 200-day EMA and faces a key resistance level at $3,470.

Solana-based meme coins have dominated the market in early 2026, with Bybit Alpha playing a central role in their resurgence. Rapid listings of tokens like WHITEPEPE and B have contributed to Solana's growing influence in the meme coin sector. Total market capitalization for Solana meme coins has risen to nearly $6.7 billion from $5.1 billion at the start of the year.

Why Did This Happen?

The delay in the Senate bill reflects ongoing tensions between regulators and industry stakeholders. Coinbase's decision to withdraw support highlights concerns over specific provisions, particularly around restrictions on blockchain-based equities and rewards. Industry players remain engaged in discussions but appear to be struggling to align on final details.

The Ethereum price movement follows months of bearish pressure, with recent inflows into staking and ETFs signaling renewed interest. Whale activity has also played a role, with a notable shift from losses to gains as buyers dominate in key derivatives markets.

The Solana-based meme coin resurgence is driven by rapid listings and deep liquidity on platforms like Bybit. This has created a fertile ground for speculative activity, with some tokens seeing gains exceeding 1,200% post-listing.

How Did Markets React?

Bitcoin (BTC) dipped below $96,000 in early trading following the Senate bill delay, reflecting investor uncertainty around regulatory outcomes. However, Ethereum's upward trajectory has provided a counterbalance, with traders eyeing potential resistance levels.

The broader crypto market remains polarized, with Ethereum and Solana-based tokens gaining traction while the memecoin sector remains volatile. Despite a 60% drop in memecoin market capitalization in 2025, new listings continue to attract attention.

Corporate developments have also influenced investor sentiment. Charles River Laboratories announced plans to acquire two firms, K.F. Ltd. and PathoQuest, to enhance its supply chain and biologics testing capabilities. The moves aim to secure long-term margins and expand its research capabilities.

What Are Analysts Watching Next?

Analysts are closely monitoring the outcome of the Senate's revised market-structure bill. A failure to reach a consensus could delay regulatory clarity, potentially impacting the broader crypto industry. Coinbase's feedback will be critical in shaping the final version.

On the Ethereum front, the ability to break through the $3,470 resistance level will be a key technical indicator. If successful, ETH could test the $3,670 level, offering a potential target for bullish investors.

Meme coin activity on Solana remains a high-risk, high-reward space. While some tokens have generated significant returns, the high failure rate underscores the speculative nature of the sector. Analysts are watching for signs of sustained demand or a potential correction.

Supply chain developments, particularly in the life sciences and rare earths industries, are also gaining attention. Charles River's acquisitions aim to strengthen its research infrastructure, while Malaysia's efforts to reduce reliance on China in rare earths highlight geopolitical shifts.