Ethereum whales have accumulated $950 million: is a bottom forming for ether?
Major Ethereum (ETH) holders continue to actively increase their positions despite the recent market correction. Over the past week, starting June 10, the balances of millionaire wallets increased from 124.85 million ETH to 125.4 million ETH. At the current exchange rate, this means whales purchased coins worth approximately $950 million. Such aggressive buying amid a local downturn is a strong signal indicating that professional players see current prices as an attractive entry point.
Technical Breakout and Return of Institutional Capital
The price of Ethereum rebounded 22% from the June low of $1,507 and managed to hold above the key monthly VWAP (volume-weighted average price) line, which currently sits at $1,705. This indicator is an important watershed for institutional investors, separating the accumulation and distribution phases of the asset.
Notably, the VWAP breakout coincided with a resumption of capital inflows into spot ETH ETFs. After a prolonged series of outflows lasting from May 11 to June 12, on June 15, the funds recorded a net inflow of $22.5 million. This broke a painful streak during which outflows were observed almost daily, except for just two trading sessions. The total net assets under management of ETFs are now approaching the $10.04 billion mark.
Seller Capitulation and Shift to Storage
Alongside whale activity, on-chain metrics are recording a decline in seller activity. Mass panic in the market subsided around June 7, when the coin found a local low. It was then that the net position change on exchanges turned negative, signaling an outflow of coins from trading platforms. This investor behavior indicates a transfer of cryptocurrency to cold wallets for long-term storage. As a result, a shortage of sellers has formed in the market, which usually heralds an imminent trend change.
Analysts at Swissblock noted in their Altcoin Vector report that Ethereum had been in a capitulation phase for a long time — a state of strong market pressure that often precedes a powerful price reversal. The current reduction in exchange balances confirms that the acute selling phase appears to be truly behind us.
Key Levels and Hidden Risks
Currently, Ethereum is trading around $1,771, holding above the monthly VWAP. To confirm the uptrend, buyers need to close the daily candle above the resistance of $1,851. This would allow the asset to return to its previous trading range. The first support on a decline will be the $1,624 level, with the critical point at the $1,507 low. A daily close below this mark will force the market to seek new lows.
Cryptalist Expert Opinion: Despite positive signals from whales and ETFs, the main danger now lies in excessively high leverage. Total open interest in ETH futures has jumped from $8.86 billion to $9.96 billion. This indicates a dominance of margin traders rather than real demand in the spot market. Overloaded longs could trigger a wave of forced liquidations at the slightest downward move, so it is still premature to talk about the end of capitulation. Only a confident breakout of the $1,851 barrier will help distinguish a true bottom from a temporary rebound.