Whales Add $1.2 Billion in Ethereum (ETH) as Price Tests a Bearish Formation

As 2025 draws to a close, Ethereum (ETH) finds itself at a dramatic technical crossroads. Currently trading near the $3,016 mark, the second-largest cryptocurrency is wrestling with a textbook “Head and Shoulders” pattern a formation that typically signals a looming price collapse. However, beneath this bearish surface, a massive tug-of-war is unfolding between retail fear and institutional-grade conviction. While the charts suggest a breakdown, the actual movement of capital tells a story of aggressive accumulation that could flip the script entirely. I. The Bearish Structure and the $2,809 Line in the Sand The primary concern for Ethereum traders is the daily chart’s bearish structure, which threatens a potential 20% correction if the “neckline” at $2,809 is breached. Losing this level would likely trigger a cascade of sell orders, potentially dragging ETH below the $2,600 range. However, this “bear trap” is currently hitting a massive wall of demand. On-chain data reveals a significant supply cluster between $2,804 and $2,823, where approximately 3.6 million ETH were previously acquired. This cluster acts as a reinforced psychological and financial floor, as large-scale holders tend to defend their cost basis with fierce buy-side pressure. II. A $1.2 Billion Whale Statement While technical indicators flash warnings, “smart money” is moving in the opposite direction. In a stunning 24-hour window, crypto whales (excluding exchange wallets) increased their holdings by roughly 400,000 ETH a staggering $1.2 billion investment. This surge in buying coincides with a dramatic 98% collapse in selling activity from long-term holders (those holding for one to two years). When long-term investors stop selling and whales begin absorbing supply at this scale, it often suggests that the current “bearish” formation is actually a massive accumulation zone designed to shake out weak hands before a move higher. III. The 2% Catalyst: Targeting $3,069 and Beyond Ethereum is currently just a 2% push away from a significant sentiment shift. The first critical resistance level sits at $3,069; a daily close above this mark would effectively weaken the bearish control and signal a reversal of the short-term trend. The ultimate goal for the bulls, however, is the $3,449 level. Reclaiming this height would completely invalidate the Head-and-Shoulders pattern and hand full control back to the buyers. With whale demand surging and the “sell-side” liquidity drying up, the path toward a January recovery looks increasingly plausible if these immediate hurdles can be cleared. IV. Essential Financial Disclaimer This analysis is provided for informational and educational purposes only and does not constitute financial or investment advice. Cryptocurrency markets, particularly Ethereum, are highly volatile and subject to rapid price swings based on technical setups and macro events. Price patterns such as the “Head and Shoulders” are speculative and do not guarantee future results. It is crucial to conduct your own comprehensive research (DYOR) and consult with a certified financial professional before making any investment decisions.