Ethereum News Today: Ethereum's Crucial Inflection Point: Whales Load Up as Technicals Deteriorate

Ethereum (ETH) is testing critical long-term support as market participants grapple with a mix of bearish technical signals and aggressive whale accumulation. The altcoin, trading near $3,100, has seen a 7% drop in the past week amid declining on-chain metrics and macroeconomic headwinds. However, large investors are bucking the downtrend, with one prominent whale expanding its position by 36,437 ETH ($53.91 million) since November 4, bringing total holdings to $1.34 billion. This divergence between short-term volatility and long-term buying highlights a potential inflection point for the crypto market.

Technical indicators underscore the bearish pressure. Ethereum's price has fallen below key moving averages, including the 200-day EMA at $3,584, while the Relative Strength Index (RSI) hovers near oversold territory at 33. A breakdown below $3,057 could trigger a test of the $2,850 level, historically a critical support zone. Meanwhile, the 200-day EMA resistance at $3,660 remains a formidable hurdle, with recent rejection at this level exacerbating near-term uncertainty.

Whales, however, are capitalizing on the weakness. Data from Arkham Intelligence and CryptoQuant reveals that holders with 10K-100K ETH increased their collective balance by 180K ETH in the past week. Notably, Tom Lee's BitMine firm has emerged as a major buyer, acquiring 9,176 ETH ($29.14 million) from Galaxy Digital OTC and adding to a total accumulation of 19,500 ETH this month. "This aggressive strategy indicates strong long-term confidence," one analyst noted, despite the whale's current $120 million in unrealized losses.

Institutional activity further complicates the narrative. While U.S. spot Ethereum ETFs have recorded net outflows of $107.1 million, Bitcoin ETFs saw inflows of $523.9 million, suggesting a potential rotation to BTC according to market analysis. Canary's XRP ETF, meanwhile, debuting with $58 million in trading volume, signaling renewed interest in altcoin exposure. On the supply side, Ethereum's deflationary dynamics remain intact, with staking yields averaging 4.1% and inflation below 1%.

The broader market context adds to the uncertainty. The Federal Reserve's hawkish stance has dampened December rate cut hopes, contributing to a $1.4 billion net outflow from ETH ETFs since late October. Network activity has also slumped to multi-year lows, with monthly active addresses and fees plummeting. Yet, some analysts draw parallels to 2017, noting that 17 million ETH has moved into accumulation addresses in 2025, pushing long-term holdings to 27 million ETH.

As Ethereum hovers near critical support, the interplay between institutional buying and macroeconomic risks will shape its near-term trajectory. With whales continuing to load up and ETF dynamics shifting, the market awaits a catalyst to break the current impasse-whether a renewed downtrend or a sustained rebound.