The Ethereum (ETH) whales have been buying during the recent downturn in the cryptocurrency market.
They are taking advantage of the recent market crash to accumulate large quantities of Ethereum at what they seem to view as discounted prices. In the past 12 hours, several prominent crypto investors have made substantial moves to bolster their positions in Ethereum, even as the broader market shows signs of strain.
Liquidations in the cryptocurrency market over the last 24 hours reached a staggering $898 million. Most of that pain has been felt by guys holding long positions.
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Ethereum Whales Are Buying the Dip
In the midst of the market’s steep drops, a few whale addresses have opted to take advantage of the reduced prices and boost their Ethereum holdings. One standout group—known as the “7 Siblings”—recently plowed a hefty sum ($42.66 million) into the purchase of a truckload (25,100 ETH) of the second-largest cryptocurrency by market capitalization. They acquired this stash at an average price of around $1,700 per token. What these guys do next with the tokens likely purchased with their probable not-insignificant shares of a current $42.66 million bust-out is of keen interest to your average Ethereum holder.
Other large investors have seized the opportunity presented by the drop to increase their holdings of Ethereum. One notable investor, identified as whale address “0x709,” took out a loan of 8.25 million DAI from the decentralized lending platform Spark and used the funds to purchase 5,227.3 ETH at an average price of $1,578. On top of this, the same address received a substantial amount of further Ethereum—6,924 ETH, which at the time was worth about $11 million—from the platform Railgun.
Yet another whale, “0x5f1,” splurged a substantial sum of 8.13 million DAI to acquire 4,983.5 ETH at an average price of $1,631. These high-profile purchases portend that there are some investors who perceive the recent downturn as a buying opportunity, with an eye to a potential rebound in prices.
Even with all these big purchases, the Ethereum market is still volatile, and even the whales don’t seem to be entirely insulated from the market’s ups and downs.
Whales are buying $ETH during the dip in the past 12 hours as the market crashed!
1️⃣ The mystery group “7 Siblings” spent $42.66M to buy 25,100 $ETH at ~$1,700, then supplied all tokens to #Aave.
2️⃣ Whale “0x709” borrowed 8.25M $DAI from #Spark to buy 5,227.3 $ETH at ~$1,578.… pic.twitter.com/hQZBpfPT7F
— Spot On Chain (@spotonchain) April 7, 2025
Liquidations and Market Strain Continue to Haunt Crypto Investors
Some whales have taken advantage of the opportunity to purchase Ethereum at a lower price during this downturn, while several other whale addresses have sustained serious losses as the price of Ethereum has fallen. One particularly troubling address is that of a whale who deposited 56,995 WETH (around $90.8 million) into MakerDAO as collateral to borrow DAI and who is now perilously close to having their WETH liquidated. This address has a liquidation price set for ETH at $1,564.58, and if ETH falls any further in price, it will almost certainly have their position liquidated.
The situation underscores the continuing risks that highly leveraged traders in the cryptocurrency market face when prices for assets like Ethereum are in flux. Earlier in the day, a massive whale position was already liquidated. This particular whale had 67,569 ETH (a cool $106 million) that were liquidated at around $1,650 in order to repay a $74.49 million loan and save him from further financial disaster as the price of Ethereum continued its downward trajectory. The chaos that ensued from this liquidation has added to the general volatility, with $898 million being the cumulative total of funds that were liquidated from the cryptocurrency market in the past 24 hours.
⚠️ A whale who supplied 56,995 $WETH ($90.8M) to borrow $DAI on #Maker is on the verge of liquidation, with a liquidation price of $1,564.58.
Earlier today, another giant whale was already liquidated for 67,569 $ETH ($106M) at $1,650 to repay a $74.49M loan as the price plunged!… pic.twitter.com/1GGSJjmmRI
— Spot On Chain (@spotonchain) April 7, 2025
Ethereum ETFs See Outflows Amid Market Volatility
Ethereum has also suffered some significant outflows from investment products, which has added to the overall bearish sentiment surrounding the asset. Over the last week, the asset’s spot ETFs saw a net outflow of almost $50 million, with both Grayscale’s Ethereum Trust ETF (ETHE) and the asset’s spot ETFs seeing significant outflows. This shift in investor sentiment stemming from the asset’s recent price action, and some other macro and regulatory factors, has prompted many investors, who by nature of being invested in the asset in the first place have a bullish outlook, to reassess their exposure to the digital asset.
From March 31 to April 4, Ethereum spot ETFs recorded a weekly net outflow of $49.93 million. The Ethereum ETF with the largest outflow during the week was Grayscale’s Ethereum Trust ETF (ETHE), with a weekly net outflow of $31.08 million.
Bitcoin spot ETFs saw a weekly net…— Wu Blockchain (@WuBlockchain) April 7, 2025
The large-scale outflows from ETFs based on Ethereum and the substantial liquidating of leveraged positions give the appearance of a difficult market for Ethereum. Ongoing volatility has led some investors to reduce their Ethereum exposure, and this too adds to the downward price movement of Ethereum.
Conclusion: A Complex Market Landscape for Ethereum
The landscape has become intricate for both active traders and long-term HODLers (Bitcoin slang for holders who don’t sell) of Ethereum. On one hand, the price dip has prompted some even-keel institutional investors and large crypto holders to buy, signaling that they see the recent downturn as an Ethereum purchasing opportunity; for instance, two weeks ago on an Ethereum price drop to just below $3,000, investment firm Paradigm in a series of tweets revealed that it had purchased more Ethereum and had more now than it held previously. On the other hand, the broader market strain and the continued specter of liquidations have many expecting further Ethereum price weakness.
The short-term risks connected to holding Ethereum are quite considerable, what with liquidations totaling $898 million and outflows from Ethereum ETFs amounting to $49.93 million. Yet, if Ethereum’s biggest holders are any gauge, the asset has a bright future. Whales have been buying the dip, and that makes us think they have tremendous confidence in the asset’s long-term recovery. As always, though, we advise investors to maintain a vigilant and cautious posture. Ethereum’s price is still far from stable, and the market’s unpredictable nature continues to drive significant price fluctuations.
While the crypto space may be progressing toward some form of regulatory clarity, that doesn’t seem to be helping matters much at present. Increased investment is coming in from institutional players, but that insurgence has not so far managed to staunch the bleeding. Increased volatility means many more opportunities to make and lose a lot of money quickly, and nobody feels particularly safe or secure right now.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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