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Ethereum whale activity and institutional accumulation have intensified in recent weeks, with significant on-chain movements signaling potential price volatility and market sentiment shifts. A notable example includes a whale that held 10,000
for 900 days before selling at $1,578, securing a $2.75 million profit despite missing a $27.6 million peak opportunity when ETH reached $4,015 in December 2022 [1]. Similarly, a separate wallet linked to the Donald Trump-backed project sold 5,471 ETH ($8.01 million) at $1,465, incurring a loss given its average purchase price of $3,259 [1]. These transactions highlight divergent whale strategies, balancing short-term gains against long-term holding risks.Institutional and whale accumulation has also surged, with Bitmine receiving 48,225 ETH ($207.54 million) from BitGo and FalconX transferring 18,404 ETH ($79.45 million) to a newly created wallet . Exchange outflows have accelerated, with net withdrawals reaching -79.2K ETH, indicating a 5.81% decline in exchange-held reserves [4]. This trend aligns with historical patterns where reduced exchange liquidity often precedes price stability or bullish momentum. Additionally, Ethereum's Open Interest-Weighted Funding Rate remains positive at 0.0057%, reflecting leveraged traders' confidence in upward price potential [4].
Technical indicators further underscore market dynamics. Ethereum's RSI has entered oversold territory, historically preceding rallies, while the 50-day EMA at $2,555 serves as a critical support level . A breakdown below $2,500 could trigger liquidations worth $106 million, as seen in a recent Sky platform incident, whereas a breakout above $2,560 might
short-covering and a bullish reversal [4]. On-chain metrics, including a 72.35% surge in large ETH transactions over $100,000 and $320 million in net deposits to exchanges, suggest heightened speculative activity [2].Whale movements have also influenced broader market sentiment. A six-year dormant wallet deposited 135,548 ETH ($399 million) to Bitfinex hours before a market crash, netting a potential $378.3 million profit [2]. Another whale moved $207 million in ETH after four years, leveraging Tornado Cash for privacy [3]. These actions, coupled with institutional inflows into spot ETH ETFs and staking rewards (35 million ETH staked on the Beacon chain), reinforce Ethereum's role as a cornerstone asset in decentralized finance [5].
Analysts caution that while accumulation patterns and technical indicators point to bullish potential, macroeconomic factors and regulatory uncertainties could hinder progress. For instance, Trump administration tariffs have contributed to a 24% ETH price drop over seven days [1], while rising network fees and liquidity constraints pose challenges for retail users [5]. However, the convergence of whale accumulation, institutional demand, and on-chain stability suggests a potential $4,500 price target for ETH, with historical Fibonacci projections extending to $8,600 .
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