Ethereum: Will $33 Million in Whale Purchases Help Recover ETH's Recent Losses?

On January 19, 2026, the cryptocurrency market suffered a significant downturn, impacting Ethereum (ETH) severely. This led to massive liquidations and a decline in prices, but a notable purchase by a whale may indicate potential recovery. This article breaks down the current situation of ETH, focusing on market dynamics, recent whale activities, and potential risks moving forward.

Key Takeaways

The cryptocurrency market experienced a sharp drop, with Ethereum losing considerable value.
Approximately $109 million in liquidations occurred after ETH fell below $3,200.
An Ethereum whale purchased over 10,000 ETH for $33.68 million during the market dip.
Despite bearish pressures, strong buying behaviors and whale accumulation suggest potential recovery for ETH.
Macroeconomic factors are affecting investor sentiment, creating risks for further declines below key support levels.

Ethereum: Can $33 mln in whale buys help clear ETH's recent losses?

The Market Crash and Its Impact on Ethereum

On January 19, 2026, the cryptocurrency market faced a steep decline fueled by discussions of tariffs and uncertainties in European markets. The total market cap plummeted from $3.23 trillion to $3.13 trillion, resulting in a loss of $100 billion. Ethereum was particularly affected, dropping to $3,177 before a slight recovery. As of the latest reports, ETH was trading at $3,192, reflecting a 3.58% decrease in value.

Ethereum liquidation heatmap

Liquidations Surge

The decline in ETH prices triggered a wave of liquidations, especially of long futures positions. Data revealed that ETH was overleveraged in the $3,350 to $3,450 range, and when prices plummeted from $3,368 to $3,117, it activated a significant liquidation pool below $3,200. As a result, forced liquidations reached a monthly high of $109 million, with $101 million originating from long positions.

Ethereum liquidation

This large-scale liquidation often leads to increased selling pressure, pushing prices down even further.

Whale Accumulation

Amid this downturn, an Ethereum whale implemented a strategy to purchase ETH at a discount. Records from Onchain Lens indicated that the whale acquired 10,057 ETH for $33.68 million on Binance. Following this purchase, the whale supplied the ETH to Aave V3, borrowing $45 million in USDT to buy 13,461 stETH, and also withdrew $129 million in USDT to buy another 38,780 stETH.

Ethereum whale purchase

This significant accumulation hints at the whale's confidence, as many in the market seem interested in generating yield during this weak market phase. As more ETH gets locked in decentralized finance (DeFi), the liquid supply diminishes, potentially affecting price stability during rebounds.

Additionally, exchange activities reflected a buy-the-dip sentiment, with CryptoQuant data showing ETH outflows of 517,471 between January 18 and January 19.

Ethereum exchange netflow

Consequently, ETH's Exchange Netflow has maintained a negative zone for eight consecutive days, typically indicating strong outflows and aggressive spot accumulation.

Evaluating ETH's Risks and Potential

The current pullback in Ethereum's price appears to stem from macroeconomic uncertainties rather than intrinsic weaknesses in demand, which is still relatively robust from both retail and whale investors. Although bearish pressures increased, the Ethereum SMI Ergodic Indicator experienced a crossover and fell to 0.18.

Ethereum SMI & EMA

At the same time, ETH has dropped below its long-term moving averages, specifically the 100 and 200 EMAs, indicating strong downside pressure. Should external factors continue to weigh on sentiment, ETH might drop further to $3,166 and potentially breach the critical $3,000 support level. However, if demand can absorb these external pressures, ETH could recover and reclaim the $3,300 mark.

Final Thoughts

As the cryptocurrency market navigates through uncertainties, Ethereum's dynamics reflect both challenges and opportunities. Whale activity provides hope for a potential recovery, although macroeconomic factors could still pose risks. Investors should stay vigilant while monitoring these developments closely.