Whale Ethereum Multisig Now Stuck in Deep Loss, Once Saw Over $1.1M in Profits

A large Ethereum whale multisig, previously in profit of over $1.1 million, is now facing a deep loss. This shift indicates a broader cooling in the Ethereum market, where traders are reevaluating their positions.

Meanwhile, Ethereum's whale activity shows a mixed trend. Over the past week, whales bought $4.83 million in spot Ethereum, while smart money traders sold $8.9 million, signaling caution among experienced investors.

Institutional interest in Ethereum is also rising. Morgan Stanley has filed for an Ethereum staking ETF, adding to its growing lineup of crypto-related products.

What Drives Ethereum's Mixed Signals?

Ethereum's price movement has not aligned with its underlying buying activity. While new wallet creation has surged, adding $2.34 billion in Ethereum, traders with large positions are showing signs of overleveraging.

Over $3 billion in Ethereum long positions are at risk if the price breaks below $2,800. This level is a key threshold for liquidations on Binance, where 25x leveraged positions could trigger cascading selling pressure.

What Could Challenge Ethereum's Stability?

Token supply dynamics are also emerging as a factor. In January, $5.5 billion worth of crypto tokens will be unlocked across 13 projects, with Ethereum's HYPE token among the largest contributors. HYPE alone will see $333.99 million in token releases.

The timing of these unlocks is critical. While the market has shown resilience in recent weeks, the influx of new supply could test the balance between demand and price stability.

Analysts are also watching the STH-NUPL metric, which tracks profit or loss for short-term holders. A recent rise suggests less immediate selling pressure, but a drop below key levels could signal renewed panic among holders.

What Lies Ahead for Ethereum and Related Markets?

Bitcoin miners are diversifying into AI infrastructure, adding another layer of complexity to the crypto market. Companies with cheap energy and existing data centers are gaining an edge, but rising infrastructure costs are challenging smaller players.

VC funding in the crypto space remains concentrated, with stablecoins and institutional-grade infrastructure dominating investment themes. Early-stage funding is expected to improve in 2026, but only modestly and under stricter scrutiny.

For Ethereum, the next few weeks will be crucial. A breakout above $3,200 could signal continued bullish momentum, while a breakdown below $2,800 may trigger a larger correction. Investors are advised to monitor key levels and leverage exposure carefully.