Whales and Institutions Buy ~$850M ETH in 48 Hours as Price Consolidates Near 200‑Week EMA
Ethereum (ETH) saw concentrated accumulation by whales and institutional buyers during late December. Large wallets (10,000–100,000 ETH) and reported institutional purchases lifted holdings by roughly 300,000 ETH between Dec 26–28, increasing supply held by large wallets from ~100.48M to ~100.8M ETH (about $850M at current prices near $2,940). Exchange reserves have fallen by ~4.4M ETH over the past year (~20.8M to ~16.4M), indicating sustained net outflows to self‑custody, staking or long‑term holdings. On‑chain fundamentals remain supportive: Ethereum retains ~68% of DeFi TVL and issues over 64% of stablecoins, with TVL near $330.7B and Fully Diluted Market Cap around $353.2B (valuation ~1.1x). Price action is rangebound and trading below key EMAs (50/100/200‑day), sitting close to the 200‑week EMA (~$2,940). Momentum indicators (RSI, MACD) show fading upside and low volatility. Technical levels to watch: support near $2,800 and critical downside zones around $2,000–$2,100 if support fails; resistance and short‑term bullish trigger lies above $3,060–$3,380 (EMA band). For traders: concentrated whale and institutional accumulation reduces available sell liquidity and supports longer‑term bullish supply dynamics, but near‑term direction depends on volume and a decisive break above the EMAs for continuation or a volume‑backed breakdown for downside. Watch on‑chain flows, exchange reserves, and volume spikes as early signals of trend change.
Bullish
Net accumulation by large wallets and reported institutional purchases (≈300k ETH / ~$850M) alongside year‑long exchange outflows (~4.4M ETH) reduces liquid sell pressure and increases the amount of ETH likely held for staking or long‑term investment. These supply dynamics are supportive for ETH price over the medium to long term. On‑chain fundamentals (high DeFi TVL, dominant stablecoin issuance) reinforce network demand. However, near‑term price action is neutral to uncertain because ETH trades below key EMAs and momentum indicators show fading upside and low volatility. Traders should therefore view the news as medium‑term bullish but conditional: a volume‑backed breakout above the EMA band (~$3,060–$3,380) would likely trigger a stronger bullish move, while a failure of support (notably ~$2,800 and the 200‑week EMA near current levels) with rising selling volume could produce significant downside toward $2,000–$2,100. Immediate trading implications: monitor on‑chain flows, exchange reserves, and volume spikes; consider reduced immediate sell liquidity but retain risk management until technical confirmation.