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Ethereum has been one of the strongest performers in the crypto market over the past two months, surging steadily to reach new all-time highs just days ago. Its rally has reinforced Ethereum’s role as the leading altcoin, attracting both institutional attention and retail speculation. However, the landscape is shifting as selling pressure begins to creep in. Some analysts warn that ETH could be at risk of further downside in the coming days, with volatility testing investors’ confidence after such an aggressive run higher.
Yet, while concerns grow, on-chain data reveals that whales continue to accumulate at scale. According to Arkham, a massive whale holding $5.97 billion in Bitcoin has now purchased $434.7 million worth of ETH. Just yesterday, this whale moved $1.1 billion to a new wallet (169q) and has been actively purchasing ETH through Hyperunit. In total, he has accumulated more than $3 billion in ETH, staking the majority of it, a move that signals strong conviction despite near-term uncertainty.
This tug of war between selling pressure and whale accumulation sets the stage for a critical moment in Ethereum’s trajectory. The coming days will reveal whether whales are strong enough to keep ETH supported or if further retracements await.
Whale Stakes Billions In Ethereum As Capital Rotation Grows
According to Arkham, one of the largest whales in the market has now purchased over $3 billion worth of Ethereum (ETH), staking the majority of it. This activity has drawn the attention of both analysts and investors, as it highlights a growing capital rotation trend away from Bitcoin and into Ethereum. The whale in question, who initially held $5.97 billion in BTC, has been gradually converting his position, deploying funds at scale through Hyperunit. His BTC address (169qYZJYkyW7HhmWTj58mVXRZDhMFHPZPd) and ETH address (0x616767179c5305a89f13348134C681061Cf0bA9e) are now being closely tracked by the market as investors speculate on his next move.
Ethereum Whale buying | Source: Arkham
After moving $1.1 billion in BTC to a fresh wallet, the whale has already purchased $434.7 million in ETH, adding to his massive accumulation and signaling continued confidence in Ethereum’s future. The majority of these holdings are being staked, which reduces liquid supply and underscores a long-term outlook rather than short-term speculation.
Now, the question remains: will he buy the next $650 million today? If so, the additional demand could provide strong support for Ethereum, even as short-term price action shows weakness. More importantly, this capital rotation trend is a clear sign that altcoins are preparing for their turn. As investors rotate from BTC to ETH and beyond, the groundwork for a broader altcoin cycle appears to be forming, setting the stage for heightened volatility and opportunity in the weeks ahead.
Testing Key Demand Level
Ethereum (ETH) is trading around $4,369, showing signs of consolidation after weeks of sharp rallies and subsequent retracements. The chart highlights how ETH has cooled from its recent all-time highs near $4,900, but remains firmly above critical moving averages that continue to guide its bullish structure.
ETH testing key MA | Source: ETHUSDT chart on TradingView
The 50-day moving average, currently near $4,372, is acting as immediate support and has been tested multiple times in recent sessions. Holding above this level is key to maintaining short-term momentum. Meanwhile, the 100-day average is around $3,962, and the 200-day average is at $3,257, reinforcing the long-term bullish trend, suggesting that even deeper pullbacks would likely be met with strong buying interest.
However, Ethereum’s inability to push back above $4,600 highlights waning momentum in the near term. Profit-taking and broader market uncertainty have slowed the pace of gains, leaving ETH vulnerable to further consolidation. A decisive break below $4,350 could open the door to $4,000 as the next major demand zone.
Ethereum remains in a healthy uptrend, but the market is clearly waiting for fresh catalysts. Whether it’s whale accumulation or broader institutional flows, ETH will need renewed buying pressure to retest its highs above $4,800.
Featured image from Dall-E, chart from TradingView
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