Ethereum holds $1,900 after $57.7M whale buying spree

Ethereum rose 5.2% to $1,928 as whale addresses accumulated $57.7 million in the token, Coinglass data shows.

"The accumulation comes as ETH broke above a descending trendline that had rejected price five times since the all-time high," said Jason Wu, on-chain analyst at Edgen. "The $1,900 level is now acting as support after flipping from resistance."

Futures open interest across all exchanges climbed to $19.8 billion on July 14, the highest since June 3, according to Glassnode. Long liquidations dominance fell to 4%, its lowest level in a year, meaning 96% of all liquidated positions were shorts squeezed out as price pushed higher. Whale trader Machi Big Brother opened a $24.3 million ETH long at 25x leverage with liquidation set at $1,833.

The next test sits at the 100-day EMA near $1,949. A decisive break above that level opens the path toward $2,018 and then $2,438, the 0.618 Fibonacci retracement of the entire cycle. On the downside, losing $1,909 would expose the $1,754 triple-confluence zone where trendline, horizontal support, and the 0.786 Fib level converge.

Whale Accumulation Signals Conviction

The $57.7 million whale buying event occurred as Ethereum's recovery gained momentum above key resistance. BitMine Immersion Technologies, an Ethereum treasury company, reported $45.7 million in staking and validator revenue for the quarter ended May 31, with staking operations accounting for nearly 98% of total quarterly revenue of $46.5 million. The company has staked approximately 4.9 million ETH, positioning it to generate an estimated $242 million in annualized staking revenue.

Despite the revenue growth, BitMine reported an $82.2 million quarterly loss driven by a $15.4 million unrealized decline in digital asset holdings and a $92.1 million loss on derivative contracts. Over the first nine months of its fiscal year, the company reported a $9.1 billion net loss, largely from approximately $9 billion in unrealized losses on its cryptocurrency holdings.

Derivatives Data Points to Short Squeeze Dynamics

The $109.3 million in total liquidations over the past 24 hours included $89 million in short liquidations, Coinglass data shows, suggesting bearish traders were caught off guard by the move higher. Ethereum's Relative Strength Index sits at 70, approaching overbought territory while indicating buyers remain in control.

One warning sign remains: volume has been declining during the recovery, meaning the breakout lacks confirmation from broad participation. A return of long liquidation dominance above 50% would indicate longs are absorbing damage again and would weaken the momentum signal.

The weekly chart reinforces the structural significance of the current level. An ascending trendline drawn from the June 2022 bottom, respected throughout the previous bull market, held near $1,600 once again. The bounce occurred inside a long-term demand zone that has served as support four times since early 2023, coinciding with the 0.786 Fibonacci retracement of the entire cycle at $1,754.

This article is for informational purposes only and does not constitute investment advice.