Ethereum whales scoop up $950 million amid reversal signals: Is the bottom truly behind us?
The price of Ethereum (ETH) has rebounded 22% from its June low, holding above the key institutional investor trendline — the monthly VWAP. This surge coincided with renewed capital inflows into spot ETH ETFs, which had been recording outflows for weeks. However, despite the positive momentum, it is still premature to declare the correction over.
Large players increase positions despite the decline
Ethereum whales continued to actively accumulate coins even during the local downturn. According to Santiment data, since June 10, the balances of millionaire wallets have grown from 124.85 million ETH to 125.4 million ETH. Over the week, they purchased coins worth approximately $950 million. This behavior indicates confidence among large holders in the asset's long-term potential.
At the same time, on-chain metrics recorded a decrease in seller activity. Mass panic subsided around June 7, when the coin found a local low. The net position change on exchanges turned negative, signaling the withdrawal of coins to cold wallets for long-term storage. A shortage of sellers has formed in the market, which typically foreshadows an imminent trend reversal.
ETF flows reverse after a prolonged series of outflows
The sentiment shift came at a very opportune time. On June 15, literally the day after the price held above the VWAP line, net inflows into spot ETH ETFs amounted to $22.5 million. This broke a highly painful series of declines: from May 11 to June 12, capital outflows were recorded almost daily, with only two trading sessions as exceptions.
The total net assets under management of ETFs are now approaching the $10.04 billion mark. The recovery in May also began with small amounts, which then grew into a string of successful days. If the market confirms the bottom, we could see a repeat of this positive scenario.
Key levels and hidden risks
Currently, Ethereum is trading around $1,771, holding above the monthly VWAP at $1,705. To confirm an upward trend, buyers need to close a daily candle above the resistance at $1,851. This would allow the asset to return to its previous trading range.
However, the main danger now lies in excessively high leverage. The total open interest in ETH futures has jumped from $8.86 billion to $9.96 billion, peaking above $10.27 billion. Overloaded long positions could trigger a wave of forced liquidations at the slightest downward movement. Therefore, it is too early to declare the capitulation over.
Expert opinion: The combination of factors — aggressive whale buying, a reversal in ETF flows, and coins leaving exchanges — indeed creates a foundation for forming a bottom. But the high open interest in derivatives remains a 'time bomb.' Only a confident breakout above $1,851 can finally confirm that the June low was a true bottom, not just a temporary rebound within a global downtrend.