Ethereum whales have scooped up ETH worth $950 million: is the market preparing for a reversal?
The price of Ethereum (ETH) made a confident rebound from its June low, gaining 22% in just a few weeks. This surge allowed the asset to consolidate above a key trend line closely watched by institutional investors—the monthly VWAP moving average. Interestingly, the upward movement coincided with a resumption of capital inflows into spot ETH ETFs, which had previously recorded outflows for several consecutive weeks.
Large holders, so-called "whales," were not only unafraid of the local decline but actively increased their positions. According to Santiment, in the week starting June 10, the balances of millionaire wallets grew from 124.85 million ETH to 125.4 million ETH. At current prices, this amounts to approximately $950 million. Meanwhile, seller activity sharply decreased: the net position indicator on exchanges moved into negative territory, signaling the withdrawal of coins into cold storage. Such behavior typically precedes a trend reversal.
ETF flows turn positive
On June 15, literally the day after the VWAP breakout, net inflows into spot ETH ETFs amounted to $22.5 million. This broke an extremely painful series of outflows that had lasted from May 11 to June 12. For comparison, at the beginning of May, the funds attracted $101 million and $98 million over two days. Currently, total net assets under management are approaching the $10.04 billion mark. If the bottom is indeed confirmed, we could see a repeat of the May scenario—first modest inflows, then a string of successful days.
Derivatives market—the main risk
However, not everything is so clear-cut. Open interest in ETH futures jumped from $8.86 billion to $9.96 billion, peaking above $10.27 billion. Typically, such growth in leverage indicates the dominance of margin traders rather than genuine demand in the spot market. Overloaded long positions could trigger a wave of forced liquidations at the slightest downward movement. Therefore, it is still premature to declare the end of capitulation.
My view: The combination of aggressive buying by whales and the resumption of ETF inflows is a powerful bullish signal. However, the market's excessive leverage makes the current rebound vulnerable. To confirm the bottom, ETH needs to close confidently above $1,851. Until this happens, any pullback to $1,624 or even the June low of $1,507 remains entirely possible.