Ethereum Price Faces a 7% Test Despite $290M Whale Buying: Here’s Why

What matters is how this happened. Ethereum price did not rally during this period, rather moved sideways.

When large holders buy without pushing the price higher, it usually means they are positioning early. Other sources confirm the same behavior.

Lookonchain data shows Fasanara Capital bought 6,569 ETH worth about $19.7 million over two days. Instead of simply holding the ETH, the firm deposited it into Morpho, used it as collateral, borrowed $13 million in USDC, and then bought more Ethereum.

This is leveraged buying and often a bullish conviction sign. Onchain Lens data adds another layer. Bitmine added 29,463 ETH worth about $88.2 million across multiple wallets.

One wallet received 18,454 ETH worth $55.6 million, while another withdrew 11,009 ETH worth $33.1 million from Kraken. These are exchange outflows, which usually signal intent to hold rather than sell.

Institutional Accumulation Adds Weight to the Story

Bitmines activity is not a one-off event. Tracking data shows that Bitmine, a company linked to Tom Lee, has been steadily increasing its Ethereum holdings week after week.

Its total balance has grown to more than 4.06 million ETH. This matters because institutional buyers behave differently from retail traders. They usually buy during quiet periods, not during price spikes.

The fact that this accumulation is happening while the Ethereum (ETH) price remains stuck suggests these buyers are preparing for a move and not chasing upside.

Still, institutional buying alone does not move markets right away. Price confirmation always comes later.

ETH Price Chart Suggests That Selling Pressure Is Fading

The price chart offers clues about why whales may be stepping in now. The Relative Strength Index, or RSI, shows a bullish divergence.

Between November 4 and December 18, the Ethereum price made lower lows. During the same period, RSI made higher lows.

Ethereum Price Action | Source: TradingView

This pattern often means that selling pressure is weakening. Sellers are still active, but they are losing strength. Price may not rise immediately, but downside momentum slows.

Another detail matters. A bearish EMA crossover completed on Dec. 21. An EMA, or exponential moving average, gives more weight to recent prices.

After this crossover finished, whale buying picked up. This timing suggests large buyers may believe the downside phase is mostly priced in.

Ethereum Price Still Needs Confirmation To Move Higher

Despite all the buying, the Ethereum price has not confirmed a rebound yet. That confirmation level is clear.

For context, ETH price needs to move about 7% higher and close above $3,122. Without that move, whale buying remains a bet, not proof.

If Ethereum clears $3,122, the next levels to watch are $3,436 and $3,690. These levels matter because sellers stepped in there earlier and stopped rallies.

Risk is still present. If the Ethereum price drops below $2,615, the rebound idea weakens. That would suggest whales entered too early, and the market needs more time.