A large Ethereum investor (whale) has repurchased 16,114 ETH for $39.85 million at an average price of $2,473 per ETH, according to on-chain data.
The same whale previously sold 7,227 ETH for $23.46 million at $3,246 per ETH on January 13, effectively buying back at a lower price after Ethereum’s recent decline.
The move comes amid a volatile period for Ethereum, which saw a sharp 11% drop to below $2,380 before rebounding by over 4%.
This price movement has heightened uncertainty in the market, with institutional investors increasing downside hedging through CME Ethereum options, particularly around the $2,000 strike price, signaling caution.
3 wallets (likely belonging to the same whale) spent 39.85M $DAI to buy 16,114 $ETH at $2,473 in the past 2 hours.
These 3 wallets previously sold 7,227 $ETH($23.46M) at $3,246 on Jan 13 and are now buying back $ETH at a lower price.
Wallets:… pic.twitter.com/Eosmm8Bb8Y
— Lookonchain (@lookonchain) February 26, 2025
Liquidation Risks Loom as Ethereum Faces Pressure
On-chain analysis by Alvin Kan, COO of Biget Wallet, revealed that three large MakerDAO positions face liquidation if Ethereum’s price drops further. The key liquidation levels are at $1,926, $1,842, and $1,793, with over $340 million at risk.
So far, $296 million has already been liquidated from Ethereum positions. If prices continue to fall, it could trigger a wave of forced selling, leading to increased downward pressure. However, analysts suggest that if buyers step in or liquidity stabilizes, a sharp recovery could follow.
Grayscale Pushes for Ethereum ETF Staking Approval
Meanwhile, Grayscale has submitted a new SEC filing to allow its Ethereum exchange-traded funds (ETFs) to earn staking rewards. The proposal would enable its Ethereum Trust and Ethereum Mini Trust ETFs to stake ETH while maintaining custodial protections.
Unlike other staking services that have faced regulatory challenges, Grayscale clarified that:
- ETH would remain under custody without being pooled with external validators.
- Staking rewards would be considered income for the fund.
- Grayscale would not market staking services separately.
If approved, this could help Grayscale’s Ethereum ETFs better track Ethereum’s real returns, making them more attractive to investors. The SEC has 45 days to review the proposal before making a decision.
