Ethereum stands as the second-largest cryptocurrency by market capitalization, currently holding a valuation of approximately $384.9 billion. However, it has experienced one of its most significant downturns in recent months. The asset has persistently traded beneath the $3,200 mark for over 20 days, reflecting a prevailing weak sentiment, with some investors opting to exchange the asset at reduced prices. However, the current market behavior indicates that this trend may be shifting in the near future. A shift is now emerging in liquidity concentration across crucial price levels on the chart, and this time, the development seems to favor Ethereum. In the last three days, the market has experienced a steady liquidation sweep aimed at bearish positions.
This sweep has persisted for three consecutive days and has traditionally served as an indicator that signifies both market peaks and troughs when significant liquidity pools are removed from the chart. The closing of short positions heightens the probability of a market rebound. The recent sweep of bearish liquidity could suggest that Ethereum has established a potential local bottom. In the wake of this liquidation sweep, a distinct trend has surfaced, as whales—those investors with substantial capital—are making their way back into the market, strategically positioning themselves for a potential ETH rally. Two notable whales have captured attention. A transaction involving $10 million in DAI stablecoins was executed, with the funds directed towards acquiring Ethereum. Interestingly, this particular whale had previously left the market but has now made a comeback, signaling a resurgence of confidence in the asset.
Machi Big Brother, a prominent whale in the crypto space, has taken a bullish stance on Ethereum. The current valuation of this position stands at roughly $29 million in ETH as of the time of this report, with an unrealized profit nearing $1.98 million. Historically, Machi Big Brother has ramped up exposure to assets when the price action shifts in their favor. Ethereum appears to be experiencing a similar trend, with increased whale capital entering the market, bolstering the bullish sentiment. Spot market participants are making their presence felt, with a notable uptick in both trading volume and buying activity occurring at the same time. Spot exchange netflow data, which monitors overall buying and selling activity, has confirmed that investors are leaning bullish.
Following a series of days marked by steady selling pressure, this group has now invested approximately $47 million to acquire Ethereum from the market, indicating a potential renewed and possibly sustained re-entry. The Spot volume bubble map indicates a cooling-off phase in previously overheated activity, a scenario that has historically foreshadowed price recoveries. The pattern adds to the bullish sentiment surrounding a possible price increase for Ethereum.