- Ethereum whales are aggressively accumulating near $4K, signaling strong long-term conviction despite short-term price volatility.
- The $506M long liquidation flushed out leveraged traders, creating a clean slate for institutions to drive Ethereum’s next upward phase.
- ETH’s 2025 inflows hit historic highs as whale activity suggests this bull cycle may differ sharply from past speculative runs.
Ethereum (ETH) is witnessing an aggressive shift in market behavior as both whale accumulation and large-scale liquidations take center stage. The asset, currently trading near $3,445 after an 11% drop, reveals a deeper story behind the volatility.
According to crypto analysts Merlijn and Cas Abbé, the recent data uncovers strong institutional positioning despite sharp corrections. This development signals a bold accumulation phase that may lay the foundation for Ethereum’s next leg upward.
Merlijn’s analysis spotlights a record-breaking rise in Ethereum accumulator address inflows. His chart tracks large wallet addresses and shows inflows nearing 480,000 in 2025—by far the highest in ETH’s history.
Source: Merlijn The Trader
Past bull market peaks, such as the 2021 spike that sent ETH to $4,800, are greatly outweighed by these inflows. It would appear from this that whales are anticipating the next big surge in Ethereum.
Whale Activity Signals Confidence
The inflow chart reveals a red-boxed region in 2025 where institutional buying has skyrocketed. These whales are not waiting for confirmation. Instead, they are stacking ETH as it reclaims the $4,000 range. This surge reflects confidence in Ethereum’s role in the financial system. Factors include growing ETF approvals, smart contract expansion, and wider institutional adoption.
Additionally, the data suggests this cycle may be fundamentally different from the last. Strategic buying on this scale implies long-term vision, not short-term speculation. Hence, the current whale accumulation could indicate Ethereum is entering a new era of demand.
Liquidation Event Clears the Path
On the flip side, Cas Abbé highlights Ethereum’s biggest long liquidation event in over three years. The recent $506 million liquidation wiped out high-leverage positions. Consequently, it flushed out weak hands and removed excessive risk from the system.
Source: Cas Abbé
Cas thinks this is bullish despite the panic-driven selloff. Strong purchasers, particularly institutions, are likely to seize control once the leverage has been removed. A healthier, more durable rally toward a new all-time high is thus set in motion.
Ethereum now stands at a key moment. Between whale conviction and a cleansed leveraged market, the conditions look ripe for renewed momentum. Traders and investors should keep a close eye on how ETH responds in the coming days.
