Galaxy Digital injects $42 million in ETH, raising market concerns amid a surge in whale capital.
Indicators show cautious accumulation amid mixed sentiment in the derivatives market and weak profits.
Galaxy Digital's OTC wallet sent 23,900 Ethereum (ETH) ($42.52 million) to Coinbase, possibly indicating an intention to sell the asset.
This development comes as Ethereum shows signs of recovery, but the timing of the inflows raises concerns about short-term selling pressure.
Furthermore, the net inflow from large holders has surged significantly, increasing caution. At the time of writing, Ethereum is trading at $1,832.58, up 1.17%, but prolonged uncertainty may challenge its recovery.
Despite the large deposits into Coinbase, Ethereum supply on exchanges has steadily decreased, now at 8.23 million ETH, the lowest in months.
This indicates that most holders continue to choose self-custody or staking rather than liquidity.
However, the net inflow from large holders skyrocketed 2,682% in the past seven days, indicating redistribution or strategic positioning. Although supply on exchanges is low, sudden OTC activity could create short-term volatility.
Source: IntoTheBlock
Price structure analysis: Key levels to watch
Ethereum has broken through a descending wedge pattern, a technical pattern often associated with bullish reversals.
This breakout has pushed the price above $1,800, with $1,830 now acting as an immediate support zone.
However, Ethereum is facing resistance around the $1,850 region, and if this level is surpassed, prices could target $2,200 and $2,400.
Conversely, if the $1,830 level is not maintained, Ethereum could retest support levels near $1,670. Thus, price action around these key zones will determine the next major move.
Source: TradingView
Increased speculation but low reliability
Derivatives data show an increase in speculative interest. The trading volume of ETH perpetual contracts rose 48.61% to $44.67 billion, while Open Interest increased 1.74% to $21.01 billion. The options market also grew, with volume up 35.71%.
However, the funding rate on Binance is almost flat at +0.008%, indicating that although leverage has increased, traders remain cautious. This neutrality suggests that reliability is still forming without being overly bullish.
Source: CoinGlass
Is the market still in an accumulation phase?
On-chain indicators indicate a continued accumulation phase. The MVRV Z-score is -0.67 at the time of writing, suggesting most ETH holders are at a loss, which historically tends to correlate with accumulation zones.
Furthermore, the neutral funding rate aligns with low-risk sentiment among derivative traders.
Therefore, despite the inflow of whale funds, profit-taking remains limited and the broader market may still be preparing for a larger move.
Source: Santiment
Ethereum's recovery process is progressing but facing mixed signals. While exchange supply continues to decline and the MVRV index shows accumulation, whale inflows and increased derivative exposure create uncertainty.
Ultimately, the ability to convert the $1,950 level into support will determine whether Ethereum can regain bullish momentum or if it remains vulnerable to another correction.
Source: https://tintucbitcoin.com/cu-soc-ca-voi-ethereum-galaxy-digital-chi-42-trieu-usd/
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