Ethereum Whales Aggressively Accumulate Amid Leverage Liquidations, Has It Hit Bottom?

▲ Ethereum (ETH)

Ethereum (ETH) is signaling a powerful rebound toward forming a structural bottom, halting its downward trend despite record-breaking leveraged liquidations, supported by massive whale accumulation totaling $18.7 billion.

According to crypto media outlet BeInCrypto on February 25 (local time), Ethereum recently experienced a sharp price drop accompanied by approximately $7.17 billion in open interest wiped out in the futures market due to large-scale leveraged liquidations. However, amid market panic, large holders aggressively bought the dip, increasing their holdings by nearly 9 million ETH. Analysts note that whales are absorbing forced liquidation volumes and building long-term positions.

In line with whale movements, long-term holders are also shifting their stance. After exerting selling pressure until early February, long-term investors have recently returned to accumulation, securing an additional 9,454 ETH in a single day on February 24. Exchange netflow indicators remain negative, showing that investors are moving assets from exchanges to private wallets. On February 23 alone, about 227,300 ETH flowed out of exchanges, highlighting a market-wide trend of accumulation rather than selling.

Technical indicators are also showing positive reversal signals. Despite lower prices, the Relative Strength Index (RSI) has formed a bullish divergence, suggesting that selling pressure has reached exhaustion. The share of short-term holders has declined from 3.2% to 2.1%, supporting the view that speculative positions have largely been cleared. With the market’s fundamental strength improving, the possibility of a trend reversal beyond a technical rebound is higher than ever.

Ethereum is now at a critical juncture for a full-scale recovery, with breaking the first resistance level at $1,990 being the immediate priority. If surpassed, the next target is projected at $2,050, and a breakout above $2,240 would signal that a structural bottom has been established. However, caution is advised as failure to sustain the rebound and a breakdown below the $1,740 support level could mean that whale accumulation was only a temporary bottom.

The market is currently witnessing a massive transfer of ownership as $7 billion in leveraged positions collapse while more than $18 billion in whale accumulation takes place. The return of long-term holders and continued exchange outflows are expected to serve as key drivers in resolving Ethereum’s supply-demand imbalance and supporting price appreciation. Investors are closely monitoring whether major resistance levels are broken and whether structural changes in the market translate into tangible price gains.

Disclaimer: This article is for investment reference only, and no responsibility is assumed for investment losses based on it. The content should be interpreted solely for informational purposes.