Ethereum (ETH) is experiencing a liquidity rotation, with smart whales and institutions making a notable return to the market. As ETH consolidated above the $3,125 mark, whales have been repositioning their assets, signaling expectations of further price improvement.
Current Market Sentiment and Performance
ETH has been trading above $3,000, with recent whale activity indicating a more bullish sentiment. The token was trading at $3,104.96, having briefly approached $3,200. The ETH fear and greed index currently stands at 51 points, suggesting a neutral market sentiment.
The cryptocurrency is seeking a clear direction, with potential boosts anticipated from both spot-buying whales and increased long positions in derivative markets. Predictions for ETH suggest a potential breakout to a higher price range, especially given the network's continued importance to Decentralized Finance (DeFi) and tokenization. ETH's current value relative to Bitcoin is 0.034 BTC, as Bitcoin itself continues to trade sideways.
Institutional and Corporate Accumulation
Bitmine Increases ETH Holdings
Bitmine, a consistent supporter of ETH, has acquired an additional 138,452 ETH, with the majority of these purchases occurring between December 1 and December 7.
The company's current ETH holdings have reached 3.73 million ETH, marking a 9.8% increase over the past month. There is speculation that Bitmine may continue its buying spree until its treasury reaches 5 million ETH.
Other treasury companies have not mirrored this trend of adding more ETH, thus representing a limited source of demand. Despite this, the total ETH balance held in accumulation wallets remains at an all-time peak, exceeding 27 million tokens.
Institutions have also contributed to the ETH balance, albeit at a slower pace than Bitmine. On-chain data indicates that the Amber Group withdrew 6,000 ETH for self-custody, originating from a Binance hot wallet through an intermediary address.
Metalpha withdrew 3,000 ETH from its Gnosis Safe Proxy wallet and subsequently deposited these tokens to Aave.
ETH has shown resilience, bouncing back from the $2,800 level in recent weeks, which has been attributed to whale intervention. Whales returned to buy the dip within this range, a period that coincided with the average acquisition price for large holders.
Whale Confidence in Derivative Trading
ETH Whales Demonstrate Confidence in Derivative Markets
The open interest for ETH has risen to over $17.4 billion, signaling increased confidence in an ongoing ETH rally. On the Hyperliquid platform, nearly 59% of whales are holding long positions, with the largest position having a notional value of $162.41 million. The leading trader on this platform, also known as the ‘Anti-CZ’ whale, has a track record of successful trades.
On-chain data reveals that some of the most prominent whales have established long positions. The whale identified as '1011', previously known for shorting BTC, is now bullish on ETH. This whale has opened the second-largest long position on Hyperliquid, valued at $155.12 million, and has maintained this position even after paying negative funding fees.
This whale has achieved over $3 million in unrealized gains as ETH extended its recovery. To support this position, the whale has added over $70 million in USDC liquidity in the past day. Previously, the whale had already secured $305,000 in profits from a smaller long position on ETH.
These active whales are recognized for their astute investment choices, and in the short term, they have successfully accumulated gains on their positions. However, they also demonstrate a willingness to take profits rather than risk liquidation.