Key Takeaways What signals show strong bullish conviction for Ethereum?

Whale accumulation surged, with a single OTC whale buying 25,000 ETH worth $112.34M, while $86M in exchange outflows signals investors moving ETH to cold storage.

What risks could challenge Ethereum’s rally?

Mid-sized whales holding 10K–100K ETH are at profit levels unseen since 2021, raising the chance of profit-taking, which could trigger short-term selling pressure.

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Since the Fed reduced interest rates by 25bps, Ethereum [ETH] has witnessed notable accumulation, led by a major OTC whale who spent $112.34M USDC to purchase 25,000 ETH at $4,493. 

This aggressive buy coincided with heavy exchange outflows, signaling that large investors are moving ETH into cold storage. 

Historically, such synchronized accumulation has marked pivotal moments in Ethereum’s price cycle.

However, the move also comes at a time when investor confidence is rising across the broader market. Can Ethereum build on this momentum to achieve a decisive breakout?

Mid-sized whales reach profit levels not seen since the 2021 peak

Ethereum wallets holding between 10K–100K ETH are now sitting on unrealized profits last witnessed in November 2021, when ETH touched its all-time high. 

These wallets have accumulated significant paper gains, putting them in a position where profit-taking could emerge. 

Historically, similar levels of unrealized profit have often led to increased selling pressure as investors seek to lock in returns. However, the current setup also reflects strong holding conviction among whales. 

This balance between accumulation and the risk of profit-taking creates uncertainty in short-term market direction.

Investors prefer holding ETH off markets

Ethereum exchange netflows have turned sharply negative, with $86.17M worth of outflows from spot platforms on the 18th of September. 

Such trends highlight how investors increasingly prefer to self-custody ETH rather than keeping it available for immediate trading. 

This move often suggests long-term holding conviction, reducing immediate selling pressure. However, these withdrawals also tighten supply on CEXs, which can amplify price volatility when demand surges. 

Therefore, the post-Fed shift in flows has positioned Ethereum in a structurally bullish setup that could magnify upward moves if buying momentum strengthens.

Ethereum pushing closer to a breakout?

Perpetual market positioning on Binance showed that 64.95% of ETH/USDT accounts were long at press time, compared to 35.05% short, giving a Long/Short Ratio of 1.85. 

This imbalance revealed strong speculative demand, with traders increasingly betting on further upside. 

However, elevated long exposure also raises the risk of sharp liquidations should prices correct unexpectedly. 

Despite this, the combination of whale accumulation, heavy outflows, and leveraged long dominance signals that market participants largely expect Ethereum to sustain upward momentum in the near term.

Can Ethereum maintain its bullish drive?

Ethereum stands at a decisive moment, with whale accumulation, exchange outflows, and long dominance aligning to build bullish conditions. 

Mid-sized whales sitting on unrealized profits introduce risk, yet overall sentiment remains constructive. If accumulation continues and selling pressure stays contained, Ethereum could extend its rally from current levels.

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