Major Ethereum Holders Capitalize on Market Downturn

As the year draws to a close, Ethereum faces significant selling pressure, with its price trading notably below the psychologically critical $3,000 threshold. This environment of extreme fear, reflected in a market sentiment index reading of just 23 points, coincides with a looming multi-billion dollar options expiry. However, a stark contrast is emerging as large-scale investors are executing substantial purchases, suggesting a divergence between short-term pessimism and long-term conviction.

Beyond price action, Ethereum's fundamental strength is being reinforced by network improvements. The "Fusaka" upgrade, activated in early December, has enhanced blockchain efficiency. The implementation of new data verification methods, known as PeerDAS, is projected to reduce Layer-2 transaction costs by an estimated 40 to 60 percent while increasing throughput on the main chain. These advancements are cited as a key reason major financial institutions like BlackRock continue to develop their ETF offerings centered on the asset.

Billions in Options Expiry Fuel Volatility

Market nervousness is being amplified by a specific event: the expiry of $6 billion worth of options contracts on Friday, December 27th. Current positioning data indicates an advantage for sellers if the price remains below $3,100. Analysts suggest that a settlement price under $3,000 would likely reinforce downward pressure, whereas a push above $3,100 could squeeze bearish positions and trigger a rapid reversal.

Should investors sell immediately? Or is it worth buying Ethereum?

Compounding the pressure are net outflows from spot ETFs, including a single-day net withdrawal of $57 million recorded on Christmas Eve.

Institutional Players and Whales Accumulate Aggressively

Despite the prevailing negative sentiment, on-chain data reveals a clear pattern of accumulation by deep-pocketed investors. This activity is often interpreted by market experts as a potential sign of a market bottom forming.

• Significant Single Purchases: One prominent large investor acquired $121 million worth of Ethereum within a 24-hour period.
• Corporate Demand: Entities including BitMine and Liquid Capital have recently made major additions to their holdings, with Liquid Capital reportedly planning further purchases in the billions.
• Whale Dominance: Addresses holding between 10,000 and 100,000 ETH now collectively control over 21 million units of the cryptocurrency.

Short-Term Outlook Hinges on Key Levels

The immediate price trajectory appears heavily dependent on the outcome of Friday's options expiry. Should buyers fail to defend the support level near $2,900, a test of the annual lows becomes a tangible risk. Conversely, a weekly close above $3,000 would neutralize the bearish scenario and potentially pave the way for a recovery as the market enters 2026.