In a significant move, large Ethereum holders have pulled over 17,000 ETH from major exchanges in just a matter of hours, amplifying accumulation signals throughout the markets. In a notable move, Tom Lee’s Bitmine executed a withdrawal of 10,000 ETH from Kraken in one transaction, significantly impacting the liquidity available on the exchange. In a separate development, a newly established wallet withdrew 7,000 ETH from Binance during the same timeframe. The wallet currently contains over 7,100 ETH, indicating a focus on concentrated positioning instead of short-term speculation. These consecutive withdrawals underscore a strategic accumulation by major players. By transferring ETH into private wallets, these entities decrease the immediate sell-side supply and strengthen a tightening liquidity landscape. Ethereum remains entrenched in a long-term descending channel on the daily chart, with the price currently probing the lower boundary of this formation. Key horizontal levels are identified at $2,797, $2,261, and $1,818. Recently, ETH has been trading around $1,954, maintaining a position just above the $1,818 support zone, which is in close proximity to the lower trendline of the channel.
Nevertheless, the sellers maintain dominance over the overall framework until the price successfully reclaims the mid-channel resistance level. Buyers need to protect this zone to avert a structural collapse. A consistent hold above $1,818 would preserve the integrity of the channel. On the flip side, a significant breach could reveal greater downside risk towards previous demand zones. At this moment, the MACD line sits at -198.86, having crossed above the signal line at -223.98, which confirms a bullish crossover on the daily timeframe. Despite both lines staying beneath the zero mark, there is a noticeable shift in momentum leaning towards buyers. The histogram displayed green bars at 25.11, indicating a surge in positive momentum following an extended bearish period. This crossover indicates a significant reduction in selling pressure. Buyers are currently working to regain momentum after experiencing a significant downturn. This shift is significant as it comes after weeks of persistent downward movement within the descending channel. If histogram expansion persists, momentum may bolster a more extensive relief rally instead of just a slight uptick. Recent sessions reveal a consistent trend of negative readings in spot netflow data. The most recent figures, as of press time, showed net outflows from exchanges totaling -$7.06 million.
Red bars take center stage on the chart, underscoring a continued trend of capital moving away from trading platforms. Significant historical surges indicate substantial withdrawals during earlier accumulation periods. This ongoing trend bolsters the argument for supply contraction. When investors withdraw ETH from exchanges, they effectively lessen the immediate sell pressure. Additionally, outflows frequently occur before periods of structural stabilization. Despite ongoing price pressure, exchange balances are persistently declining. This disconnect between declining prices and capital flight bolsters the overarching narrative of whale accumulation. At this time, Funding Rates stood at 0.002620, showcasing a significant +249.75% increase. The significant uptick in positive funding indicates a strong bullish stance among traders in perpetual markets. Traders are ramping up their premiums to sustain long exposure. This surge indicates robust speculative confidence, yet it simultaneously heightens risk. Crowded long positioning has the potential to spark volatility if the price does not manage to rebound.
However, leverage expansion frequently coincides with initial recovery efforts. The gap between spot accumulation and increasing leverage forms a multifaceted framework. Whales are soaking up the supply as derivatives traders ramp up their exposure. This scenario paves the way for increased volatility as both parties challenge their beliefs. Whales are actively accumulating ETH as exchange outflows remain steady and momentum starts to stabilize. At the same time, leveraged traders are ramping up their long exposure significantly. The price continues to navigate within a descending channel, while structural support remains intact around $1,818. If buyers manage to hold this zone and momentum continues to build, ETH may make a move toward mid-channel resistance for a potential recovery. However, the inability to maintain support could heighten liquidation risks due to the current elevated funding levels. Overall, the coordinated accumulation and tightening supply indicate that major players are preparing for a potential stabilization instead of an imminent breakdown. Major holders persist in withdrawing assets from exchanges, indicating a strategic approach to long-term positioning. However, ongoing accumulation needs to correspond with structural strength to validate a lasting foundation.