Following Ethereum's recent decline, more aggressive bargain hunting has emerged on-chain. Foreign media reports indicate that some large-scale Ethereum holders are absorbing market selling pressure, but continued outflows from ETFs are still suppressing prices. Market focus is now shifting to whether these buy orders can truly absorb the selling pressure.
whales continued to add to their positions during the decline.
The report mentioned that a whale bought 35,723 ETH at around $1,563, investing approximately $55.8 million. This address had previously sold 60,000 ETH and 9,442 wstETH at around $2,040.
Another investor borrowed $142 million USDT through Aave and subsequently bought 87,680 ETH at an average price of approximately $1,620. This indicates that even with the market continuing to weaken, a large amount of capital still considers the current price range acceptable.
ETF funds are still flowing out.
However, this sell-off is not solely due to changes in on-chain sentiment. The article points out that Ethereum ETF investors are continuing to withdraw funds, which is also a significant factor contributing to the market pressure.
Meanwhile, on-chain data reflects another change. Exchange ETH reserves remain near multi-year lows, at approximately 15 million tokens, with some large holders continuing to transfer tokens out of exchanges and increasing their positions as prices fall.
Leveraged positions are nearing liquidation levels.
The article argues that the problem lies not only in whether there are buyers, but also in the stability of these purchases. Increased holdings in the physical market typically better reflect long-term holding intentions, while borrowed purchases are more sensitive to price fluctuations.
Taking this position established through Aave as an example, its health factor is 1.16. If ETH falls to around $1354, the position will face liquidation pressure. If the price continues to decline, this type of leveraged buying may turn from a supporting force into new passive selling pressure.
Therefore, while the buying by whales has mitigated the impact of ETF outflows to some extent, the market still needs to observe whether these positions are for stable accumulation or for accumulating new risks during the decline.
