Ethereum Faces Whale Tug-of-War Amidst Market Consolidation
Bulls and bears clash as ETH price navigates a critical juncture after breaking key resistance.
Ethereum’s recent surge past $2,850 has ignited a battle between bullish accumulation and bearish shorting, creating uncertainty despite significant exchange outflows. The tug-of-war highlights the complexities in predicting ETH’s next move.
Whale Activity Sends Mixed Signals
On-chain data reveals conflicting strategies among large players. **Lookonchain** reported that **Sharplink** (SBET) recently made a substantial purchase of 21,487 ETH, valued at $64.26 million, acquired through OTC and Coinbase Prime.
SharpeLink(SBET) purchased 21,487 $ETH($64.26M) via OTC and Coinbase Prime 2 hours ago.
SharpeLink received 10,000 $ETH($25M) from Ethereum Foundation 5 days ago.
Recently, SharpeLink seems to be buying $ETH continuously. pic.twitter.com/WQt73dWhaC
— Lookonchain (@lookonchain) July 12, 2025
This purchase occurred shortly after the firm received 10,000 ETH worth $25 million from the Ethereum Foundation, signaling strong confidence in ETH’s long-term potential.
However, not all major players share this optimism. Simultaneously, three wallets opened heavily leveraged short positions, betting against ETH with 15x–25x leverage. These shorts totaled 48,458 ETH, worth $143.37 million, secured with just $10.5 million in USDC margin. As of July 12, 2025, the total value locked in DeFi protocols stands at $105 billion, reflecting overall market confidence (DeFiLlama).
3 wallets opened heavy leveraged short positions on $ETH in the past 6 hours.
They shorted 48,458 $ETH($143.37M) with 15x-25x leverage, using only 10.5M $USDC as margin.https://t.co/jyyWbxPZnL pic.twitter.com/yYhW0l9MVU
— Lookonchain (@lookonchain) July 12, 2025
Exchange Outflows Indicate Bullish Sentiment
Data from CoinGlass indicates a substantial outflow of over $206 million in Ethereum from exchanges on July 11. Such outflows typically suggest accumulation by long-term holders and reduced sell-side pressure, which can be a bullish signal.
Despite these outflows, daily trading volume has decreased by 35% in the last 24 hours, adding complexity to the immediate price outlook.
Technical Analysis Points to Potential Rally
Ethereum broke through the key resistance level of $2,850, displaying bullish momentum. However, the asset appears to be undergoing price consolidation due to recent gains exceeding 20% over the past three days.
Currently, ETH is trading above the 200-day Exponential Moving Average (EMA), confirming its uptrend. A sustained position above the former resistance could trigger a 37% rally toward the $4,000 mark.
