Ethereum Whales Split as Accumulation and Selling Clash

Ethereum whales are pulling the cryptocurrency in opposite directions as January 2026 unfolds, with large holders simultaneously accumulating and distributing ETH while the asset struggles below $3,000. The contrasting behavior highlights growing uncertainty among major investors as network fundamentals remain surprisingly strong.

The second-largest cryptocurrency faces mounting pressure, down nearly 5% year-to-date and trading at $2,863.66, representing a 2.69% decline over the past 24 hours. This downturn has erased all of Ethereum's early 2026 gains, with the asset dropping over 10% in the past week alone.

Whale activity reveals a stark divide in market sentiment. On-chain data from Lookonchain shows that OTC whale address 0xFB7 purchased 20,000 ETH worth $56.13 million, part of a five-day accumulation spree totaling 70,013 ETH valued at approximately $203.6 million. This aggressive buying follows a broader trend where Ethereum whales added more than 350,000 ETH in a single day last week.

Exchange Reserves Signal Long-Term Positioning

CryptoQuant data indicates that Ethereum exchange reserves continue to decline, suggesting reduced sell-side supply as large holders move ETH off exchanges into longer-term storage. This movement typically indicates bullish sentiment among major investors who prefer to hold assets in private wallets rather than on trading platforms.

Capital rotation from Bitcoin to Ethereum has become increasingly evident. President Trump-backed DeFi project World Liberty Financial swapped 93.77 WBTC worth $8.08 million for 2,868 ETH, while another whale address 0xeA00 offloaded 120 BTC valued at $10.68 million to acquire 3,623 ETH. These strategic reallocations suggest growing confidence in Ethereum's relative value proposition.

Selling Pressure Emerges from Long-Term Holders

However, not all whale activity points toward accumulation. An early Ethereum whale wallet 0xb5Ab deposited 50,000 ETH worth $145.25 million into Gemini after nine years of dormancy. Analyst EmberCN noted that this address originally withdrew 135,000 ETH from Bitfinex when prices hovered around $90, representing a 32-fold increase. The wallet still retains 85,000 ETH valued at $244 million.

Additional selling pressure comes from address 0x3c9E, dubbed the 'buy high, sell low' whale by Lookonchain. Over three days, this wallet offloaded 5,500 ETH worth approximately $16.02 million at an average price of $2,912, despite purchasing 2,000 ETH just five days earlier at higher levels near $2,984.

Network Fundamentals Flash Bullish Signals

Despite mixed whale behavior and subdued price performance, Ethereum's network fundamentals remain remarkably strong. CryptoOnchain reports that the seven-day simple moving average of Ethereum active addresses has reached an all-time high of 718,000, creating a distinct bullish divergence between price action and network activity.

This record-breaking participation suggests that Ethereum's core utility remains intact even amid ongoing volatility. Historical data shows similar divergences often precede upward price momentum, potentially driven by Layer-2 adoption, renewed DeFi activity, or fresh retail interest entering the ecosystem.

Technical analysis provides additional optimism, with multiple indicators suggesting Ethereum is positioned for an upward move. The combination of record active users, shrinking exchange reserves, and positive technical signals strengthens the bullish case, though overall crypto market trends and macroeconomic conditions will likely influence the timing of any significant price movement.

Looking Ahead: The conflicting whale behaviors reflect broader market uncertainty, yet Ethereum's underlying network strength suggests the current price consolidation may be temporary. As institutional interest grows and network activity reaches new heights, the market may soon re-price ETH to reflect these fundamental improvements, potentially breaking above the crucial $3,000 resistance level in the coming weeks.