While Ethereum’s price appears stable, consolidating around the $3,100 mark, significant movement is occurring beneath the surface. On-chain data reveals a notable trend of accumulation, contrasting with hesitation from smaller investors. Large-scale holders, often referred to as “whales,” are actively reallocating hundreds of millions of dollars from Bitcoin into ETH.
Institutional Demand and Exchange Withdrawals Signal Confidence
A clear indicator of this shift is the activity on cryptocurrency exchanges. For five consecutive days, a net total of approximately 32,000 ETH has been withdrawn from major trading platforms. Such movements typically indicate assets are being moved to private wallets for custody, a strategy associated with medium to long-term holding rather than immediate selling.
This behavior is mirrored in the fund market. The Fund Market Premium has returned to positive territory for the first time in nearly two weeks, suggesting institutional investors are willing to pay above the spot price to gain exposure to Ethereum through regulated fund vehicles.
One particularly large transaction underscores the scale of this rotation. A single whale recently converted 1,969 Bitcoin, valued at roughly $178 million, into 58,149 Ethereum, worth approximately $181 million at current prices.
Network Enhancements Through the Fusaka Upgrade
On the technical front, Ethereum activated its second major network upgrade of the year in early December: the “Fusaka” update. Its central innovation is the introduction of PeerDAS. This system allows network validators to verify only small segments of data packages instead of processing complete datasets.
Developers anticipate several benefits from this change:
* Reduced operational costs for node operators
* Faster processing for Layer-2 transactions
* Improved overall network scalability as data demands increase
Should investors sell immediately? Or is it worth buying Ethereum?
According to Ethereum developer Marius Van Der Wijden, the full impact of the upgrade will materialize over the coming months. The network is gradually increasing its “blob” capacity to ensure stability during the transition.
Trading Volume and Ecosystem Metrics Present a Mixed Picture
In a significant market development, Ethereum’s spot trading volume surpassed that of Bitcoin in mid-December for the first time since 2017. On a single day, ETH trading volume reached around $24.4 billion, fueled by ETF inflows and institutional buying activity.
However, the Total Value Locked (TVL) within the Ethereum ecosystem tells a more nuanced story. After peaking at $90 billion in the autumn, the TVL now stands at approximately $70 billion. Some market analysts suggest that a sustained rise above the $100 billion threshold may be necessary for Ethereum to mount a credible challenge to its previous all-time high prices.
Key Price Levels and Macroeconomic Considerations
From a technical analysis perspective, breaking decisively above the $3,150 resistance level could pave the way for a move toward $3,400. On the downside, the area around $3,020 is viewed as a critical support zone.
In the near term, broader macroeconomic factors are influencing investor sentiment across all asset classes. Upcoming policy decisions from the U.S. Federal Reserve are tempering risk appetite. Should the macroeconomic environment become more favorable, the ongoing accumulation by large holders could provide substantial momentum for Ethereum. Market participants are also closely monitoring the next release of U.S. inflation data scheduled for December 20th.
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