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Ethereum (ETH) is undergoing a significant market transformation as large investors, known as whales, intensify their accumulation while leveraged long positions face massive liquidation. This shift suggests a potential realignment in market sentiment, with institutional players showing growing confidence in the long-term trajectory of the second-largest cryptocurrency. [1]
Recent data reveals that Ethereum whales are aggressively buying ETH near the $4,000 level, despite the asset currently trading at $3,445 following an 11% drop. According to crypto analysts Merlijn and Cas Abbé, the inflows into large wallet addresses have reached record levels—nearly 480,000 ETH in 2025—surpassing even the inflows seen during the 2021 bull run. This level of institutional accumulation suggests a strategic approach to market entry, rather than speculative behavior. [1]
The whale activity appears to be driven by Ethereum’s evolving role in the financial ecosystem. Analysts point to factors such as expanding smart contract capabilities, increased ETF approvals, and broader institutional adoption as key contributors to this confidence. The current inflows indicate that major players are not waiting for price confirmation before entering the market, but are instead building positions as the price stabilizes near $4,000. [1]
Meanwhile, the market has also seen a significant liquidation event, with $506 million in leveraged long positions wiped out in a matter of days. This marks one of the largest such events in over three years and has effectively cleared out high-risk positions from the market. Cas Abbé notes that while the selloff may appear panic-driven, it also paves the way for more stable and sustained upward momentum. With excessive leverage removed, stronger buyers—particularly institutions—are now in a better position to take control and drive the next phase of the Ethereum bull run. [1]
The interplay between whale accumulation and long liquidation suggests that this bull cycle may diverge from previous speculative cycles. Rather than being driven by retail FOMO (fear of missing out) or leveraged trading, this buildup appears to be underpinned by strategic, long-term investment. If this trend continues, it could indicate that Ethereum is entering a new phase of demand, supported by a more mature and resilient market structure. [1]
As Ethereum stands at a critical juncture, market participants are advised to closely monitor the price action in the coming days. The combination of strong institutional buying and a cleansed leveraged environment may provide the foundation for a more durable and significant rally. Whether this leads to a new all-time high or a consolidation phase will depend on how these underlying dynamics evolve in the short term. [1]
Source: [1] Ethereum Whales Accumulate as Longs Liquidate in Bold Market Shift (https://cryptofrontnews.com/ethereum-whales-accumulate-as-longs-liquidate-in-bold-market-shift/)

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