Ethereum slides toward $2,900 as mega‑whale accumulates $1.67 billion in ETH
Ethereum is under renewed selling pressure despite aggressive accumulation from deep‑pocketed buyers. While one major whale has quietly built a $1.67 billion Ethereum position, the market remains weighed down by profit‑taking, weak sentiment, and a clearly bearish technical picture.
Over the past two days, ETH has extended its decline, dropping to around $2,900. That is a steep retreat from the year‑to‑date peak near $4,960 and broadly in line with the correction seen across the wider crypto market. The pullback highlights a familiar tension in digital assets: long‑term accumulation by large players versus short‑term fear and technical selling.
Arthur Hayes continues to offload ETH
Additional downward pressure has come from continued selling by Arthur Hayes, the founder of derivatives exchange BitMEX. On the latest trading day, Hayes moved 682 ETH, worth close to $2 million, to exchanges or addresses associated with selling activity. Data tracking his wallets indicates that his total Ethereum disposals for the month have surpassed $5 million.
Hayes has not exited Ethereum entirely, however. Even after these sales, he is still sitting on more than $22 million worth of ETH. At the same time, he appears to be rotating part of his capital into other opportunities within the crypto ecosystem, such as Pendle, Ethena, and EtherFi, signaling a more active, tactical allocation strategy rather than a blanket exit from the market.
For traders, his moves are significant less because of their absolute size and more because of the signaling effect. High‑profile selling tends to amplify existing bearish sentiment, especially when prices are already trending lower and retail participants are on edge.
A giant whale quietly builds a $1.67 billion position
In stark contrast to Hayes’ steady distribution, at least one large investor is taking the opposite side of the trade. On the same day ETH slid toward $2,900, a single whale bought approximately $136.49 million worth of Ethereum. That purchase is part of a much larger accumulation campaign that began on November 4.
Since that date, this wallet has added around $1.67 billion in ETH. The scale and persistence of these purchases suggest a long‑term thesis rather than short‑term speculation. Such buyers typically look beyond daily volatility and focus on multi‑year trends in network adoption, fee generation, and the evolution of Ethereum’s role in decentralized finance and tokenization.
Whale accumulation can serve as a form of “stealth support” for prices: while it may not immediately reverse a downtrend, it often creates a floor where strong hands are willing to step in on dips. However, as the current decline shows, even billion‑dollar inflows are not always enough to offset broader market risk aversion in the short run.
Institutional buying: Tom Lee’s firm targets a 5% ETH stake
The accumulation narrative is not limited to anonymous wallets. Tom Lee’s firm, BitMine, has also been steadily increasing its Ethereum exposure over recent months. Over the past 30 days alone, the company has acquired 436,361 ETH, which it characterizes as roughly 3.6% of the circulating supply.
BitMine’s stated ambition is to eventually control around 5% of Ethereum, using that position to generate substantial annual yields via staking. With post‑Merge Ethereum operating as a proof‑of‑stake network, large holders can earn rewards by securing the chain, turning ETH into a yield‑bearing asset rather than just a speculative token.
The strategy reflects a growing institutional view of Ethereum as digital infrastructure. Instead of trading ETH purely on price momentum, some firms are now structuring it more like a productive asset—comparable, in their eyes, to owning a share of a global settlement network that pays out in native tokens.
Ethereum’s dominant role in the crypto stack
This institutional interest is underpinned by Ethereum’s central role in the broader digital asset ecosystem. The network has become the dominant chain across several key verticals:
– Decentralized finance (DeFi): Many of the largest lending, derivatives, and decentralized exchange protocols are built on Ethereum or use it as their primary settlement layer.
– Real‑world asset tokenization: From government bonds to real estate and funds, a rising number of tokenized financial products are being issued on Ethereum or Ethereum‑compatible platforms.
– Stablecoins: A substantial share of dollar‑pegged stablecoin volume and liquidity still flows through Ethereum, reinforcing its importance as the base layer for crypto‑dollar activity.
This multi‑sector presence is one reason long‑term bulls argue that periodic drawdowns are more about positioning and macro risk than about the underlying value of the network. For them, dips toward major psychological levels are opportunities to accumulate, not reasons to abandon the asset.
Technical picture: bearish crossover and flag formation
Despite these fundamental strengths, the technical setup for ETH currently favors the bears. On the daily chart, Ethereum has been grinding lower for months, falling from its year‑to‑date high near $4,960 to the current region around $2,915–$2,900.
Two closely watched moving averages—the 50‑day and 200‑day—completed a bearish crossover in November. This so‑called “death cross” typically signals a shift from an uptrend to a more prolonged corrective or consolidating phase, especially when confirmed by declining volume and lower highs.
In addition, price action has shaped what analysts describe as a bearish flag pattern. After a sharp initial drop, ETH has been trading within a relatively tight, upward‑tilting channel, which historically often resolves with another leg lower. Taken together, these signals reinforce the notion that the path of least resistance, for now, is down rather than up.
Key support levels: $2,622 and the $2,000 psychological zone
Based on the current structure, many traders are watching $2,622 as the first major downside target. A clean break and daily close below that area would confirm that sellers remain firmly in control and open the door to deeper losses.
Below $2,622, the next critical zone is the round‑number support at $2,000. This level is psychologically important, often acting as a magnet during high‑volatility phases. If ETH were to revisit $2,000, some long‑term holders might interpret it as a rare opportunity to buy at what they consider a heavily discounted valuation relative to network activity and future growth prospects.
However, if $2,000 fails to hold, the narrative could turn significantly more negative, with forced liquidations and margin calls exacerbating the move. That scenario would likely require either a sharp deterioration in broader macro conditions or a crypto‑specific shock.
Why is Ethereum falling while whales are buying?
At first glance, it may seem contradictory: if large players and institutions are buying billions in ETH, why is the price still sliding? The explanation lies in the dynamics of order flow and sentiment.
Whales often build positions gradually, buying over weeks or months and avoiding sudden spikes that would drive the price against them. Their accumulation is steady but not necessarily aggressive enough to overpower the waves of selling from traders de‑risking, closing leveraged positions, or reacting to negative headlines.
At the same time, the broader macro backdrop—uncertainty around interest rates, equity market volatility, and regulatory developments—can push risk assets lower across the board. In such an environment, even fundamentally strong projects like Ethereum can trade down simply because investors are reducing overall exposure to volatile assets.
What this means for traders and long‑term holders
For short‑term traders, the current setup demands caution. The technical trend is down, and momentum indicators still favor sellers. Those trading on lower timeframes are likely to prioritize risk management, wait for clear reversal signals, or focus on range‑trading between well‑defined support and resistance zones.
Long‑term holders, on the other hand, may pay closer attention to whale activity, staking yields, and on‑chain metrics rather than day‑to‑day price moves. From their perspective, aggressive accumulation by large players, combined with Ethereum’s entrenched position in DeFi and tokenization, can be interpreted as confirmation of a long‑range bullish thesis—even if the road there includes painful drawdowns.
Both groups must also consider the impact of ETH’s supply dynamics. With EIP‑1559 burning a portion of transaction fees and proof‑of‑stake reducing new issuance, periods of high network activity can make Ethereum’s supply net‑deflationary. That structural backdrop is one reason some investors are willing to absorb volatility today in anticipation of potential supply‑driven upside over the coming cycles.
Potential catalysts for a reversal
For Ethereum to reverse its current downtrend, the market will likely need a combination of technical and fundamental catalysts:
– A clear reclaim of key moving averages, especially the 50‑day and 200‑day, turning them from resistance back into support.
– A breakdown of the bearish flag pattern failing to materialize, with price instead consolidating and then breaking upward.
– Renewed growth in DeFi activity, tokenized assets, and stablecoin volumes on Ethereum, indicating stronger on‑chain demand.
– A more favorable macro environment for risk assets, including lower perceived interest‑rate risk and improved equity sentiment.
– Progress on Ethereum scaling solutions and upgrades that reduce fees and enhance user experience, driving more real‑world usage.
If some or all of these factors align, the current accumulation by whales and institutions could become the foundation for the next significant leg higher.
Outlook: bearish in the near term, contested in the long term
In the immediate future, the bias for Ethereum remains to the downside, with $2,622 and then $2,000 standing out as crucial levels to watch. The combination of a bearish technical structure and ongoing selling from notable figures like Arthur Hayes supports a cautious stance among short‑term participants.
At the same time, the quiet but persistent accumulation by a $1.67 billion whale and the strategic staking‑focused purchases by institutional players highlight a very different long‑term view. To them, Ethereum is not simply another volatile token but a core piece of digital financial infrastructure with durable network effects.
The market, as always, is where these narratives collide. Whether the bears’ focus on charts and macro headwinds or the bulls’ conviction in Ethereum’s structural role ultimately proves correct will depend on how the next few quarters unfold. For now, the only clear conclusion is that both sides are positioning aggressively—and the stakes, in dollar terms, are higher than ever.