‘Time to buy Ethereum?’ – Why whales are stacking ETH below $2K

A new whale is causing a stir in the cryptocurrency market after taking out about $21.7 million in assets from the institutional trading platform FalconX. These assets included $7.3 million in Hyperliquid [HYPE], and $14.4 million in Ethereum [ETH].

That said, the investor amassed ETH close to a recent local low, and entered HYPE during its peak. 

Within 24 hours, the position was already displaying an unrealized gain of about $400,000, despite the divergent entry points. This suggests that prices were still moving in the whale’s favor.

Given that FalconX primarily serves high-net-worth and institutional clients, such significant transactions are frequently considered an indication of confidence in assets.

Mixed sentiments around ETH

Meanwhile, Michaël van de Poppe, an analyst, stated that he had a long-term bullish outlook for Ethereum.

He believes that ETH will see a significant increase in value over the next five to ten years, and that the current prices represent a unique buying opportunity. 

At the same time, Arthur Hayes paid an average price of $1,793 per ETH in the past week, amassing 5,900 ETH valued at roughly $10.58 million.

Nevertheless, he sold 6,000 ETH for about $10.14 million at an average price of $1,690, lower than his purchase cost. The trade resulted in a realized loss of roughly $606,000. Lookonchain described this as ‘buying high and selling low again.’

Typically, investors aim to buy low and sell high, but in this case, Hayes locked in a loss by purchasing at higher prices and selling at lower ones.

Ethereum’s market dynamics

Taken together, these signals suggest a market where institutional accumulation and bullish narratives sustain long-term belief in Ethereum, despite short-term volatility and varying trading strategies producing mixed price action.

This came as the price of ETH was trading at $1,734.82 at press time, following a slight increase over the previous day. 

Meanwhile, CryptoQuant’s Ethereum’s Spot Taker CVD (Cumulative Volume Delta) over a rolling 90-day period indicates that spot market sentiment has changed in favor of buyers. This comes after an extended period of aggressive selling. 

In the past, these transitions from selling to buying have frequently signaled the beginning of bullish momentum and a possible longer-term rebound.

All this happens while, the U.S. spot ETF’s institutional demand has turned negative, keeping the price of ETH below $2K in late Q2.

Final Summary

• Long-term trust in Ethereum is still supported by bullish narratives and institutional buying, despite varying trading strategies.
• Prior shifts from seller dominance to buyer dominance have frequently indicated the early stages of bullish momentum for ETH.