Ethereum whales have scooped up ETH worth $950 million: signs of a bottom or a bull trap?
The Ethereum market is showing an impressive recovery: from the June low of $1,507, the asset has risen by 22%, returning above the key VWAP line closely watched by institutional players. This bounce coincided with renewed inflows into spot ETH ETFs, which had previously recorded sustained outflows for several weeks.
Institutions are returning
On June 15, net inflows into spot Ethereum ETFs amounted to $22.5 million, breaking a prolonged outflow streak 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. This dynamic suggests that large players are beginning to actively build positions at the first signs of an upward trend. The total net assets under management of ETFs is already approaching the $10.04 billion mark.
Whales are acting ahead of the curve
Network analytics show that large holders began accumulating coins even before the VWAP breakout. Since June 10, the balances of millionaire wallets have increased from 124.85 million ETH to 125.4 million ETH. Over the week, whales bought up assets worth approximately $950 million, completely ignoring the local price drop. Concurrently, on-chain metrics recorded a decline in seller activity — mass panic stopped on June 7, when the asset reached a local low. The net change in exchange positions went into negative territory, signaling an outflow of coins to cold wallets for long-term storage.
The futures market is the main threat
Despite the positive signals, the overall picture is marred by the situation in the derivatives market. Open interest in ETH futures jumped from $8.86 billion to $9.96 billion, and at its peak exceeded $10.27 billion. Typically, a reliable foundation for growth is formed only after the complete liquidation of excess leveraged positions. Now we are seeing the opposite process — open interest is rising along with the price, indicating the 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 movement, so it is too early to talk about the end of capitulation.
Key levels
Currently, Ethereum is trading around $1,771, holding above the monthly VWAP at $1,705. To confirm the upward trend, buyers need to close the daily candle above the resistance at $1,851. The first support on a decline will be the $1,624 level, and the critical point is the low at $1,507. A daily close below this mark will force the market to seek new lows.
Expert opinion: The current situation resembles a classic bull trap. Yes, whales are accumulating positions, and ETFs are showing inflows, but the overheated futures market makes the asset extremely vulnerable. The true bottom will only be confirmed after the complete liquidation of excess leverage, not by another bounce off the VWAP.