Ethereum News Today: Ethereum Tests $4K as Whales Split Bets Post-Turbulent October

A prominent crypto whale identified as "Buddy" has once again increased its long position in Ethereum (ETH) during a minor market uptrend, according to on-chain analytics. The trader, known for high-leverage strategies, added 250 ETH to its portfolio, bringing the total long position to 2,450 ETH at 25x leverage. This move contrasts with a simultaneous reduction of 10,000 HYPE tokens, as tracked by platforms like HyperInsight and Lookonchain, according to a Bitget report. The adjustments follow a turbulent October in which the market erased $12.56 million from Buddy's holdings, prompting a more cautious approach.

Ethereum's recent price action has drawn attention from analysts, who note a potential bull-flag pattern forming below the $4,100–$4,250 resistance band—a level that has constrained upward momentum since mid-2025, in a Yahoo Finance analysis. Bitbull, a crypto analyst, highlighted that buyers continue to defend the $3,600–$3,750 support zone, a critical area for maintaining the broader uptrend. A breakout above the $4,100–$4,250 level could push ETH toward $5,000–$6,000, aligning with bullish projections noted in that analysis. Meanwhile, Binance's reported inflow of over 30,000 ETH has added to optimism, as such large orders often precede stronger price moves, the piece observed.

The broader market context reveals mixed signals. Hyperliquid's derivatives market has seen open interest surge to $1.97 billion, the highest since the October 11 downturn, while long positions have generated $182.6 million in profits against $222.7 million in short losses, according to Bitget. Institutional confidence is also evident, with a $1 billion SEC filing for HYPE staking by Hyperliquid Strategies and a significant ETH order from Binance noted in the Yahoo Finance analysis. However, whale positioning remains split, with $7.2 billion in open interest evenly divided between long and short bets, per Bitget's coverage.

Buddy's strategy shift mirrors broader trends among major traders. After aggressively expanding ETH and HYPE holdings in late October, the trader now appears to be consolidating gains. This includes a partial exit from high-leverage HYPE trades and a 10x long in PUMP, diversifying the portfolio to three tokens with a combined value of $24.31 million, as reported by Bitget. The move underscores a shift toward risk mitigation as market volatility persists.

Market watchers are closely monitoring Buddy's next steps, given the trader's historical influence on sentiment. While the Ethereum price remains within its broader uptrend, with higher lows forming, the path to a sustained rally will depend on whether buyers can sustain momentum above the $41–$42 support zone—a level analysts suggest could trigger a 54% surge to $61.5, according to the Yahoo Finance analysis. For now, the crypto market remains in a state of cautious optimism, with institutional activity and whale positioning offering key indicators of future direction, as detailed by Bitget.