In a crypto market in full upheaval, the accumulation of Ether by whales is increasing in scale. Despite a price remaining below $3,000, this trend, combined with a reduction in supply on exchanges, could trigger a significant price movement. At the same time, long positions on derivative contracts are increasing, adding additional pressure to the market.
In brief
- Large entities are accumulating massive amounts of ETH, creating increasing pressure on the market.
- The supply of ETH available on exchange platforms is reducing, which increases tensions on the asset.
- A majority of positions on derivative contracts are oriented upward, indicating an expectation of upside.
- The increasing use of leverage exposes the market to increased volatility, with the potential for sharp moves.
The accumulation of Ether by whales: a sign of increasing pressure
For several weeks, the Ether market has been marked by an unprecedented accumulation of crypto by institutional players and whales. Despite an ETH price compressed below $3,000, these large entities continue to buy heavily, indicating long-term confidence in the crypto's future.
This trend could have significant implications for price action as supply on exchanges tightens.
Here is the essential facts of this massive accumulation:
- Accumulation by the whale “66k ETH Borrow Whale” : this entity added 40,975 ETH, worth approximately $121 million, bringing its total purchases to 569,247 ETH (or $1.69 billion) since the beginning of November;
- Crypto analyst CW's statement: Big whales have not taken profits in this cycle and continue to increase their positions;
- The other major player is Bitmine: this company has stepped up its purchases with a recent acquisition of 67,886 ETH ($201 million), bringing its total holding to 4.06 million ETH, or approximately 3.37% of the total ETH supply.
These purchases, while relatively muted in terms of immediate price movement, signal increased confidence among large investors in the future of ETH. Indeed, these players seem to be preparing for a potential long-term rebound, despite a lack of immediate gains.
The contraction of Ether supply and the rise of leverage
While whale accumulation appears to be a key driver of the current tension, another dynamic is just as crucial: the reduction in the supply of ETH on exchanges and the increasing use of leverage.
The latest supply data shows that the ratio of ETH available on platforms like Binance has fallen to its lowest level since September 2024, with only 3.2% of the total supply present on these markets.
This contraction in supply on exchange platforms, combined with an increase in long positions in derivative contracts, with 70% of global positions currently being long, is increasing the pressure on the market.
The increase in the leverage ratio, which reached a record high of 0.611, indicates that traders are deploying an increasing number of borrowed funds to maximize their long positions. This rise in leverage not only increases the risks of massive liquidations in the event of a market downturn, but also the possibilities of a spectacular breakout if pressure continues to mount.
According to crypto analyst CW, failure to realize profits by large whales, combined with high leverage exposure, could create fertile ground for a rapid rise in the asset's price, particularly if support levels around $2,600 are swept away by declining liquidity.
The accumulation of Ether by whales and the contraction of supply on exchanges are adding increasing pressure to the market. With long positions multiplying and the potential for increased volatility, ETH could soon see a turning point. Meanwhile, Ethereum's record 34,468 crypto transactions per second highlights the growing importance of its blockchain.
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