Ethereum Bears Shift as Whales and Spot Buyers Push Back

December 5, 2025 Amelia Rhodes 0 Comments

Ethereum Bears have dominated the market for weeks, but recent activity shows a noticeable shift as bulls begin reclaiming control. After an extended period of downward pressure that kept Ethereum trading below the 3,200 level, signals from on-chain behavior, liquidity movements, and renewed whale participation now point toward a possible trend reversal. With spot buyers also stepping back into the market, sentiment surrounding ETH may be strengthening again.

For the past month, Ethereum has struggled through one of its steepest declines in recent times. Despite being the second-largest cryptocurrency by market capitalization, valued at around 384.9 billion, the asset remained unable to rise above the 3,200 mark for more than twenty days. This weakness reflected broader negative sentiment, as many investors opted to sell or swap their holdings at lower prices in search of safety. However, market behavior over the last few days suggests that this bearish narrative may be losing momentum.

Ethereum Bears analysis chart showing ETH’s 1-month price movement with consolidation below 3,200 and recent signs of recovery.

Ethereum’s one-month price chart on CMC provides clearer context for the current market shift. After spending most of the month trading below the 3,200 level, ETH showed repeated attempts to stabilize despite sustained selling pressure. The chart highlights a tight consolidation range followed by subtle signs of recovery, aligning with the recent whale accumulation and renewed spot buying activity. These visual trends reinforce the possibility that Ethereum may be forming a local bottom, as both on-chain behavior and price action begin to converge toward a more bullish outlook.

Ethereum Bears Face a Liquidity Shift Toward Bullish Control

A notable change has emerged in how liquidity is positioned across key price levels. Unlike earlier periods where bearish pressure dominated, the latest pattern now appears to favor Ethereum. The most striking signal is a repeated liquidation sweep targeting short positions over the past three days. This liquidation activity, which has persisted consistently, resembles past events that marked major turning points for ETH.

Historically, three-day liquidation sweeps have often indicated that significant liquidity pools have been cleared from the market. When short positions are forcibly closed, it becomes more difficult for bearish traders to push the price further down. This recent sweep suggests that Ethereum may have formed a temporary or local bottom, making room for buyers to regain influence. With bearish liquidity cleared out, conditions may be developing for a market rebound.

Whales Return: A Major Vote of Confidence Against Ethereum Bears

One of the strongest indicators of shifting sentiment is the renewed activity from large-scale investors. Whales, known for holding and moving substantial amounts of capital, have begun accumulating ETH again. Their actions often influence market direction, especially during periods of uncertainty.

Two whales have drawn particular attention. The first investor moved 10 million in DAI stablecoins into Ethereum, re-entering the market after a previous exit. This decision signals that the whale now sees value at current price levels and is confident enough to take a substantial position.

Meanwhile, another widely recognized whale, known as Machi Big Brother, opened a large bullish position valued at about 29 million worth of Ethereum. At the time of reporting, this position already showed nearly 1.98 million in unrealized profit. Historically, this whale has increased exposure when market trends shift favorably, often positioning early before broader market rallies. Their current behavior suggests an expectation that Ethereum may soon experience upward momentum.

The combined actions of these major holders strengthen the perception that ETH is entering a period of renewed accumulation. Large inflows from whales often encourage retail and mid-sized investors to follow, adding further support to price movement.

Spot Buyers Step Back In as Ethereum Bears Lose Strength

While whale behavior is often influential, spot market activity provides a clearer look at grassroots investor sentiment. Recent data reveals that spot buyers have returned after several days of consistent selling pressure. This shift reflects more than just isolated trading, it demonstrates renewed confidence among everyday participants.

Spot exchange netflow data shows that roughly 47 million has recently been used to purchase ETH. This fresh capital marks a meaningful reversal from previous outflows, indicating that investors are no longer retreating from the market. Instead, they are choosing to increase exposure, suggesting expectations of stronger price performance ahead.

Additional confirmation comes from the spot volume bubble map, which highlights a cooling phase following a period of overheating. Historically, when spot trading cools after intense selling or volatility, prices tend to stabilize before staging a recovery. This behavior supports the idea that Ethereum may soon be positioned for a positive upward shift.

Ethereum Bears Fading: Is a Market Reversal Developing?

Taking the recent data into account, Ethereum appears to be entering a transitional phase. The consistent liquidation of bearish positions has weakened sellers’ control. Whale accumulation shows that high-value traders are anticipating price strength rather than continued decline. At the same time, spot buyers have re-engaged with the market, adding millions in new inflows.

Although these factors do not guarantee an immediate rally, they highlight an improving environment for Ethereum. When bearish liquidity is cleared and demand increases across different investor groups, a stronger foundation forms for potential upward movement. If this momentum continues, Ethereum may soon break away from its extended period below the 3,200 level.

Final Thoughts: A Potential Turning Point in the Battle Between Bulls and Ethereum Bears

Recent activity offers several clear insights. Ethereum Bears have been weakened by three consecutive days of short liquidations, which may have flushed out the last major pockets of bearish liquidity. Whales are returning with substantial capital, reinforcing the view that ETH may be undervalued at current prices. Meanwhile, spot investors have demonstrated renewed interest, contributing around 47 million in fresh market inflows.

Altogether, these developments mark a possible shift toward a more bullish environment. While the market still faces uncertainties, the coordinated signals across liquidity, whale behavior, and spot activity show that Ethereum may be preparing for a recovery phase. As long as accumulation continues, the outlook for ETH could improve significantly.

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