The Ethereum market is presenting a complex picture as on-chain data reveals whale profits have turned negative while simultaneously entering one of its strongest accumulation phases in years. According to Coinglass data, ETH has faced over $40 million in liquidations recently, with sellers liquidating nearly $24 million during rebounds. The altcoin has declined over 34% in the past month, currently trading around $1,955 after briefly testing the formidable $2,000 resistance level.
Critical data from CryptoQuant shows Ethereum's largest investors are no longer in profit, with unrealized profit ratios slipping into negative territory. Wallets holding between 1,000 and 10,000 ETH have an average unrealized profit ratio of -0.21, while those with 10,000 to 100,000 ETH are at -0.18. Even the largest addresses holding more than 100,000 ETH are slightly underwater with a ratio of -0.08. This situation historically occurs during major market pullbacks and could trigger selling pressure if whales decide to exit positions due to continuous failures to surge above $2,000.
Despite this negative profit scenario, Ethereum is experiencing unprecedented accumulation activity. Analyst Batman revealed that accumulation has reached levels not seen in several years, with over $490.9 million moved into freshly created wallet addresses in a 24-hour period—2.4 times higher than average. Whale wallet addresses secured approximately $39.2 million inflow (30.7x above average), while exchange wallets saw $56.9 million outflow, typically a bullish signal.
Interestingly, Ethereum's net buying from high-net-worth investors now significantly outpaces Bitcoin, suggesting possible capital rotation ahead of potential catalysts. CryptoQuant author CW noted that whales are quietly buying massive amounts of ETH, particularly focusing on positioning in the futures market.
Technically, buyers have managed to keep Ether above the key support level of $1,755. The next challenge is pushing above the 100-day EMA at $2,100, which could propel ETH toward the 50-day SMA at $2,795. However, failure to break above the EMA100 trend line could see the price slide toward $1,750, with a break below potentially leading to declines around $1,500.
