Ethereum whales have accumulated $950 million: bottom formation or a trap?
The Ethereum price made a confident rebound of 22% from the June low, returning above the key VWAP line closely watched by institutional investors. This rise coincided with renewed inflows into spot ETH ETFs, which had been recording capital outflows for weeks prior.
Are Institutions Returning?
Large holders continued to actively accumulate cryptocurrency even during the decline phase. According to on-chain analytics, since June 10, the balances of millionaire wallets have grown from 124.85 million ETH to 125.4 million ETH. Over the week, whales bought coins worth approximately $950 million. At the same time, metrics recorded a decrease in seller activity: mass panic stopped on June 7, when the net outflow of coins from exchanges turned negative. This is a signal of assets being moved to cold storage — a classic bullish sign.
ETFs Reverse the Trend
After a painful series of outflows from May 11 to June 12, when only two trading days were positive, on June 15 spot ETH ETFs attracted $22.5 million. This is enough to break the prolonged decline. Currently, total net assets under management are approaching $10.04 billion. If historical patterns repeat, a modest inflow will be followed by a series of successful days, as was the case in early May.
Danger of Overheated Leverage
The main threat now is the excessively high open interest in ETH futures. It jumped from $8.86 billion to $9.96 billion, peaking above $10.27 billion. The rise in open interest along with the price indicates the dominance of margin traders rather than real spot demand. Overloaded long positions could trigger a wave of forced liquidations at the slightest downward movement. It is too early to talk about the end of capitulation.
Key Ethereum Levels
Currently, ETH is trading around $1,771, holding above the monthly VWAP of $1,705. To confirm an upward trend, buyers need to close the daily candle above the resistance of $1,851. This would return the asset to its previous trading range. The first support on a decline will be the $1,624 level, with the critical point being the low of $1,507. A daily close below this mark will force the market to seek new lows.
My expert opinion: The accumulation of $950 million by whales is a powerful bullish signal, but it is neutralized by the bubble in derivatives. Until open interest drops by at least 15-20%, any rebound will be vulnerable to liquidations. The true bottom will only form after a complete "cleanse" of excess credit positions. Until then, every breakout to the upside should be viewed with caution.