- Ethereum whales resumed heavy accumulation after prices moved above $1,900, withdrawing 50,000 ETH from exchanges in a single day.
- ETH derivatives surged with open interest rising from $9B to $11B as traders placed long positions expecting a bullish breakout.
- The Pectra upgrade enabled smoother staking and sparked renewed network activity, turning Ethereum deflationary and raising gas fees.
Ethereum (ETH) experienced a sharp reversal in sentiment as its price climbed back above $2,000, prompting immediate spot accumulation from whales and a spike in long positions across derivative markets.
Major ETH holders decided to accumulate again as the price managed to stage a recovery above $1,900. There was almost 50,000 ETH taken out from centralized exchanges by major funds and anonymous whales connected with their wallets over the last day. This change came after weeks of market indecision and during the Ethereum Pectra upgrade.
Abraxas Capital was among the notable entities withdrawing funds. It moved 2,300 ETH from Binance as part of its continued build-up of reserves. These transactions significantly contributed to the declining ETH exchange reserves, which now sit at approximately 8.4 million on spot platforms.
DeFi Traders Join Spot Accumulation
Besides institutional activity, decentralized finance participants used stablecoins like DAI and USDT to purchase ETH near the $1,993 level. This added to the overall bullish pressure on prices and reflected confidence in Ethereum’s prospects after the upgrade.
The recent Pectra upgrade, which allows for easier staking of 2,048 ETH in a single deposit, has been cited as a catalyst for increased activity. As a result, Ethereum briefly turned deflationary. The surge in gas usage pushed transaction fees up from $0.01 to $0.80, while swap costs on decentralized exchanges rose to over $13.
Derivative Markets Reflect Bullish Sentiment
Derivatives trading mirrored the enthusiasm of spot markets. Open interest on major platforms grew from $9 billion to over $11 billion within hours. Traders positioned aggressively in long contracts, many initiated in the $1,700 range.
A whale also returned to Hyperliquid with a $14.5 million USDC deposit, opening a long position that generated unrealized gains reaching over $600,000. The position remained active as ETH breached $2,001 during early US trading hours.
