Ethereum is the second-largest cryptocurrency by market capitalization, currently valued at about $384.9 billion, yet it has suffered one of its steepest declines in recent months.
The asset has continued to trade below the $3,200 level for more than 20 days, as overall sentiment remained weak, and some investors exchanged the asset at lower prices.
However, current market behavior suggests that this trend could be changing soon.
Liquidating the shorts: Bulls begin to take control
A shift is now appearing in liquidity concentration across key price levels on the chart, and this time, the development appears to favor Ethereum [ETH].
Over the past three days, the market has seen a consistent liquidation sweep targeting bearish positions.
Source: Alphractal
This sweep has lasted for three consecutive days and has historically acted as a signal that marks both market tops and bottoms when major liquidity pools are cleared from the chart.
In this case, the closing of short positions increases the likelihood of a market rebound. The sweep of bearish liquidity may indicate that Ethereum has formed a potential local bottom.
Whales are accumulating ETH
Following this liquidation sweep, a clear pattern has emerged, with whales—investors holding large amounts of capital—re-entering the market and positioning themselves for a possible ETH rally.
Two whales, in particular, have stood out. One of them moved $10 million in DAI stablecoins and used the funds to purchase Ethereum.
Notably, this same whale had previously exited the market but has now returned, indicating renewed confidence in the asset.
Source: Onchain
Another well-known whale, Machi Big Brother, has also opened a bullish position on Ethereum.
This position is currently worth approximately $29 million in ETH at the time of publication and is sitting on an unrealized profit of about $1.98 million.
Historically, Machi Big Brother has increased exposure to assets when price action moves in their favor.
This behavior may now be playing out once again with Ethereum, as more whale capital flows into the market and strengthens the bullish outlook.
Spot investors increase exposure
Spot market participants have also stepped in, as both trading volume and buying activity have increased simultaneously.
According to the Spot exchange netflow data, which tracks overall buying and selling activity, confirmed that investors are leaning bullish.
Source: CoinGlass
After several days of consistent selling pressure, this group has now spent roughly $47 million to scoop up Ethereum from the market, signaling a renewed and possibly sustained re-entry.
In addition, the Spot volume bubble map on CoinMarketCap points to a cooling-off phase in overheating activity, a condition that has historically preceded price recoveries.
This pattern further strengthens the outlook for a potential upward move in the price of Ethereum.
Final Thoughts
- Ethereum bears have been liquidated for three consecutive days, marking a potential shift toward a bullish trend.
- Spot investors are returning to the market as volumes rise, backed by roughly $47 million in fresh inflows.
Source: https://ambcrypto.com/ethereum-bears-wiped-out-whales-spot-buyers-return-with-47-mln-push/
