Ethereum Whales Accumulate $12.5 Million – Is ETH's $2,261 Breakout Imminent?

Ethereum whales have resumed aggressive buying, withdrawing over $12.5 million in ETH from exchanges and reinvesting in leveraged positions.

Key Takeaways:

Ethereum whales have withdrawn over $12.5 million in ETH, indicating strong accumulation.
The price is struggling within a descending channel, with resistance at $2,261.
A gradual recovery is noted in momentum indicators, but bullish confirmation is still limited.
Open Interest has risen, suggesting more capital entering the market, but higher leverage increases liquidation risks.
Major traders maintain a bullish stance, but high long positions may create vulnerability if resistance holds.

This information highlights the current state of Ethereum and the dynamics affecting its price movement and market sentiment.

Ethereum whales

Data from Lookonchain indicates that one whale took out 6,114 ETH worth about $12.52 million from OKX and then deposited it into Aave. This movement shows a strategic rotation of capital, not a sign of selling pressure.

In addition, two previously inactive accounts emerged again after three months, spending $10.93 million to acquire 5,350 ETH at a price of $2,043. This synchronized activity suggests a strong conviction among large investors.

Furthermore, trader Machi has increased his 25x leveraged ETH position after adding another $250K in USDC to HyperLiquid. However, his six-month profit and loss has swung from a $44.8 million gain to a $29.23 million loss, highlighting the high-risk environment, despite earlier declines.

Ethereum's Price Movement: Can It Break Free From the Descending Channel?

Ethereum (ETH) continues to trade within a defined descending channel on the daily charts. Recently, the price reached the lower boundary near $1,800 and responded positively. Buyers effectively defended this critical support zone. Nevertheless, the upper trendline still limits upward movement near the $2,200 to $2,300 area.

The $2,261 level is now a significant point of resistance, while $2,797 remains a formidable barrier. Currently, the rebound from $1,800 has only recovered part of February’s sharp decline. Therefore, bulls need to push past $2,261 with sustained momentum to weaken the overall bearish trend. Until that point, the descending channel will continue to influence price behavior.

Ethereum price action

Source: TradingView

Momentum indicators now show a gradual recovery rather than aggressive growth. The RSI is currently at 44.74, while its signal line hovers around 37.95. This indicates a move away from oversold conditions earlier in February. However, since the RSI remains below the midline of 50, bullish confirmation is limited.

While buyers have strengthened the short-term structure somewhat, they have not yet gained complete control. Moreover, the RSI has yet to enter overbought territory, reducing the risk of immediate exhaustion. This setup indicates that consolidation may continue above $2,000. If the RSI rises above 50 and maintains higher levels, we could see increased upward pressure.

Growing Interest in Ether as Leverage Builds

The positioning in derivatives has increased alongside renewed whale activity. Open Interest has grown by 6.39% to reach $25.82 billion, indicating fresh capital entering the futures markets.

When Open Interest expands while prices stabilize, traders often expect a directional shift. However, higher leverage also raises the risk of liquidation. Should prices fail to break past the channel resistance, crowded long positions may quickly come under pressure. Conversely, if prices consistently move above $2,261, it could trigger short liquidations and increase volatility in the upward direction.

Thus, the expanding Open Interest presents a two-sided dynamic. The next significant movement will likely determine whether the leverage amplifies profits or intensifies losses.

Open interest

Source: CoinGlass

Why Leading Traders Maintain a Long Bias

Positioning data reveals that Binance's top traders are holding a 1.72 long/short ratio. Long accounts make up 63.17%, while short accounts account for 36.83%.

This figure indicates persistent bullish sentiment among experienced traders. Despite recent market volatility, these traders continue to lean towards long positions. This behavior syncs with whale accumulation and the rising Open Interest.

However, substantial long exposure can create risk if resistance remains firm. Liquidity often forms around heavily concentrated trades. If Ethereum decisively surpasses $2,261, long positions could support momentum. Yet, if the price retraces to $1,800, those with leveraged buys might quickly experience significant losses.

Top traders

Source: CoinGlass

In summary, whale accumulation and the expansion of leverage currently characterize Ethereum's recovery phase. However, the descending channel continues to define the broader trend. If buyers can reclaim the $2,261 level with strength, continued upward movement could follow. Until that break occurs, increasing leverage and a heavy long bias may heighten market volatility in either direction.

Final Summary