According to Alphractal, the crypto market has entered its most bearish phase since 2023. Total liquidations surged to $2.59 billion, with Ethereum alone accounting for $1.16 billion of those losses.
Ethereum [ETH], the second-largest cryptocurrency by market capitalization, fell to lows near $2,300 as risk-off sentiment intensified.
While many investors exited at a loss, others interpreted the drawdown as a discounted entry point rather than a breakdown.
Investors treat the dip as a discount
The decline over the past session was particularly aggressive, driving Ethereum down to its July 2025 low, based on TradingView data.
Despite the severity of the move, select investors continued to accumulate ETH at scale, committing millions amid widespread fear.
Two wallets—identified as “7 Siblings” and “0xB7”—led this wave of accumulation, collectively spending $57.44 million on Ethereum.
The “7 Siblings” wallet has a track record of buying ETH during sharp market corrections. In the latest dip, the whale deployed $31.08 million into Ethereum.
On-chain data further shows the presence of unfilled buy orders, indicating additional accumulation intent. The wallet’s total ETH holdings now stand at approximately $599.53 million.
Wallet “0xB7” followed a similar strategy, capitalizing on the downturn to scoop up 10,000 ETH worth $26.36 million at the time of purchase. This move lifted its total Ethereum holdings to roughly $294.79 million.
Accumulation during a phase defined by extreme uncertainty—caught between hopes of recovery and deepening bearish sentiment—often reflects long-term positioning at perceived discounted levels.
Still, such positioning does not guarantee accuracy.
While these flows suggest Ethereum may be approaching a local bottom, further downside remains a real possibility.
Big players, bigger losses
Not all large-scale bets on Ethereum have paid off. BitMine’s Ethereum Digital Asset Treasury (DAT) is currently sitting on an unrealized loss estimated at $6 billion.
BitMine has steadily accumulated Ethereum and remains one of the largest corporate holders of the asset, framing the strategy as a long-term expansion play.
Earlier, after recording substantial drawdowns when Ethereum slipped toward the $3,000 level, the firm began staking its holdings.
As of the 12th of January, BitMine had staked approximately $3.33 billion worth of ETH, seeking yield as a partial hedge against market losses.
These developments underscore a critical reality: that institutional players are not immune to volatility.
Another whale, tagged “HyperUnit” and linked to Garrett Jin, fully exited its Ethereum position following the recent sell-off, locking in an estimated $250 million loss.
Before liquidating, HyperUnit held $299.46 million worth of ETH. The wallet now holds just $53 in Ethereum.
Together, these cases highlight the scale and severity of the post-crash sell-off.
Investors who placed aggressive bids on Ethereum have absorbed significant losses, reinforcing the idea that recent accumulation does not confirm a definitive bottom. Prices can still probe lower levels.
Where is liquidity flowing?
Liquidity and volume metrics offer a clearer view of Ethereum’s current market structure.
The Money Flow Index (MFI), which tracks capital inflows and outflows, shows sustained dominance of selling pressure.
At the time of writing, the MFI remains in bearish territory, having dropped below the neutral 50 level. With the indicator hovering around 41, sellers continue to outweigh buyers.
Volume-based confirmation further strengthens this outlook. The Chaikin Money Flow (CMF), used to assess whether buying or selling volume dominates, remains firmly negative.
The CMF has stayed below zero since re-entering bearish territory after briefly exiting in July 2025.
This persistent weakness supports the case for continued downside risk, with Ethereum potentially revisiting the $2,000 region unless sentiment shifts decisively in favor of recovery.
Final Thoughts
- Capital flight has failed to deter conviction buyers, as two whales—large-scale investors—acquired Ethereum worth more than $57 million.
- Formerly bullish investors suffered steep losses, with many capitulating their positions. Tom Lee–backed BitMine was among the casualties.
