Ethereum is testing critical demand levels after a sharp pullback from its recent peak at $4,790. The correction has pushed ETH toward the $4,200 region, a level that bulls are now trying to defend. Despite strong momentum in recent weeks, selling pressure is mounting, and some analysts warn that Ethereum could face a deeper correction before finding solid ground.
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Yet, institutional accumulation continues to provide a strong counterforce. Data from Arkham Intelligence reveals that two whale accounts bought nearly $200 million worth of Ethereum over the past 24 hours. These new players are part of a broader trend of institutional investors and large funds aggressively adding ETH to their treasuries.
The scale of these purchases signals growing confidence in Ethereum’s long-term prospects, even as short-term volatility tests market sentiment. Such whale accumulation often reflects strategic positioning ahead of potential rallies, reinforcing Ethereum’s status as a cornerstone of the broader crypto market.
Ethereum Whale Accumulation Signals Growing Institutional Confidence
According to Arkham, two fresh whale addresses have just purchased a combined $192 million worth of Ethereum from Bitgo, raising eyebrows across the market. The wallets, 0xEC9A7e7D864bD598d0F0F00d8D397E83171c52De and 0x728e79933070e44273Eb23bD0aB937565f41777d, executed these massive buys in what analysts see as part of a broader institutional accumulation trend. The timing has sparked speculation from Arkham — what do these players know that the retail market may be missing?
The rise of Ethereum as a treasury reserve asset is quickly becoming a reality. Similar to the Bitcoin corporate adoption wave that began with MicroStrategy, institutional players are now openly adding both Bitcoin and Ethereum to their balance sheets. This shift signals that global adoption is accelerating, with Ethereum recognized not only as a smart contract and DeFi backbone but also as a strategic long-term store of value.
These latest whale purchases reinforce the idea that institutional money is here to stay, even as ETH faces short-term volatility. With exchange supply steadily declining and OTC liquidity thinning out, every major accumulation adds pressure to the supply side, making ETH structurally bullish in the long run.
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Price Action Details: Testing Demand
Ethereum (ETH) is currently trading at $4,222, showing signs of stabilization after a sharp retracement from the recent $4,790 high. On the 4-hour chart, ETH is attempting to hold above the green 100-day moving average (around $4,180), a key support level that could determine short-term direction.
The rejection near $4,800 marked a local top, followed by sustained selling pressure that pushed ETH below the 50-day moving average (blue line). This signals fading momentum in the short term, with bears attempting to gain control. However, the current bounce from the 100-day MA suggests that bulls are still defending critical support zones.
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Volume has spiked during the decline, reflecting aggressive selling but also significant absorption from buyers. If ETH holds the $4,200–$4,180 range, a potential recovery toward $4,400–$4,500 could play out in the coming sessions. On the other hand, failure to defend this level could open the door for a deeper correction toward $3,950–$3,900, aligning with the 200-day MA (red line).
Featured image from Dall-E, chart from TradingView
Amid the resurgence in inflows, Blackrock’s IBIT Bitcoin ETF is gaining traction, outpacing the outflows from Grayscale Bitcoin Trust (GBTC). Meanwhile, the Spot Bitcoin ETFs registered a positive flow for the second consecutive day after a weak start this week. The 11 BTC ETFs accounted for a total influx of $91.3 million.
BlackRock Bitcoin ETF Covers Entire GBTC Outflows
As GBTC witnessing significant outflows of $124.9 million on Thursday, Blackrock experienced substantial inflows amounting to $192.1 million, according to Farside UK data. This effectively neutralized GBTC’s negative flows. In addition, this divergence suggests a growing preference among investors for Blackrock’s ETF, possibly due to its perceived advantages or market dynamics.
As Grayscale’s GBTC reserves continue to diminish, it holds around 314K BTC according to Apollo. Moreover, it indicates a massive 50% decline from the initial reserve of 619K BTC. However, the BlackRock Bitcoin ETF has continued snapping up BTC with 269K tokens.
In addition, the gigantic BTC reserve held by BlackRock’s IBIT spotlights a major feat as the ETF started off with only 228 BTC. On the other hand, the Fidelity Wise Bitcoin ETF noticed an enormous slump in inflows with a mere $4.8 million influx. Earlier, FBTC accounted for double the flows from IBIT on Wednesday with $76.3 million net inflows.
Meanwhile, the Bitwise Bitcoin ETF (BITB) recorded a decent inflow of $11.1 billion. However, even BITB’s flows halved from Wednesday’s figure of $24.3 million influx. On the contrary, the Valkyrie Bitcoin Fund (BRRR) witnessed an inflow of $8.3 million after days of zero net flows.
Also Read: Fidelity Launches Three New Liquid Alts ETFs for Enhanced Equity
Bitcoin Price Sustains Above $70K
Meanwhile, Bitcoin’s price remains relatively stagnant. Moreover, it has displayed sideways movement in anticipation of the upcoming halving event, which is just 7 to 8 days away. The market is also witnessing a slowing pace of block production following a recent difficulty adjustment.
At press time, the Bitcoin price was up by 0.27% to $70,910.13 on Friday, April 12. Whilst, the crypto boasted a market valuation of $1.39 trillion. On the other hand, the trading volume for BTC plunged 18.99% to $30.20 billion in the last 24 hours. Due to heightened volatility, BTC failed to hold the $71,000 level.
Amid the resurgence in the Bitcoin ETF inflows, BTC has experienced heightened volatility owing to a tiff between long and short positions. In 24 hours, Bitcoin witnessed long liquidations of $18.38 million, according to Coinglass data. However, shorts dominated and accounted for a massive $22.72 million liquidation.
Also Read: BlackRock & Grayscale Bitcoin ETF Reserve Gap Shrinks To 50K BTC
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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