The market’s at a juncture where “buy the fear” is crucial for a trend reversal. In other words, monitoring smart money is essential to capitalize on FOMO while navigating volatility. For Ethereum, this appears particularly significant considering the current positioning of traders. Arkham Intelligence has revealed that an ETH whale has initiated a substantial long position worth $537 million at a price of $3,175. However, the 4.7% decline of ETH on December 12th resulted in the position facing $20.5 million in unrealized losses. According to data, the most significant single liquidation occurred on Hyperliquid, with the ETH-USD position valued at $5.6 million. In the last 24 hours, ETH has taken the lead in total liquidations, surpassing $120 million.
ETH’s price is currently caught in a tug-of-war between fear and greed, with the $3k level serving as a crucial support point that traders are monitoring closely. However, considering the positioning of whales, the stakes are at an all-time high. Whales with 100k+ ETH are currently facing a test of their realized price. Data reveals that Ethereum whales (white band) are nearing the current ETH price (blue band), marking a rare occurrence. Indeed, in the last five years, this event has taken place just four times. Each occurrence notably triggers strong accumulation waves, propelling both bands higher.
Whales strategically purchase during dips, effectively absorbing selling pressure and protecting their positions from potential losses. With greed continuing to influence the market, the potential for capitulation remains a significant concern. In a highly volatile market, Ethereum whales are significantly increasing their long positions, heightening the stakes involved. If ETH falls beneath the whale realized price, it may initiate liquidations and increase downward pressure. The $3k level is currently in a precarious state. If greed persists, a breakdown becomes increasingly probable. Conversely, an increase in this metric might indicate the beginning of Ethereum’s fifth significant accumulation phase.
Ethereum finds itself in a tug-of-war between fear and greed, with whales accumulating significant long positions as the price hovers around the crucial $3,000 support level. A drop beneath the whale realized price could set off liquidations, whereas a rebound might ignite a new accumulation phase.