Ethereum’s (ETH) market remains as volatile as ever, with major price fluctuations and institutional activities continuously influencing market sentiment. The recent large purchase of 17,855.3 ETH by the mysterious entity “7 Siblings” has raised significant speculation. Is this a sign of a potential market rebound, or could it be a strategic move to manipulate prices for profit?

A Calculated Acquisition: 17,855.3 ETH

The entity known as “7 Siblings” made a substantial purchase of 17,855.3 ETH for $36.68 million, acquiring the coins at an average price of $2,054 per ETH. This sizable acquisition has garnered attention for multiple reasons, primarily due to the timing and volume of the purchase. Notably, this entity already holds over 1.169 million ETH, valued at $2.53 billion across two wallets, signaling substantial institutional backing.

The $2,054 price per ETH aligns with Ethereum’s recent lows, suggesting that this acquisition was made with a long-term strategy in mind. Institutions often take advantage of market dips, positioning themselves for future growth. Given that the price of Ethereum is currently below the $2,500 mark, a price rise could occur if more institutional players follow suit.

However, there’s always the risk of market manipulation. Large players often create fear-of-missing-out (FOMO) scenarios, driving prices up before cashing out at a peak. The fact that “7 Siblings” holds such a large amount of ETH gives it considerable influence, and a potential sell-off could bring prices crashing down below $2,000, leading to heightened risks for retail investors.

Analyzing Ethereum’s Active Address Metrics

Ethereum’s on-chain data reveals some interesting developments. As of March 5, 2025, Ethereum had a total of 847.59K addresses. Of these, 160.89K were new addresses, indicating potential fresh interest in the asset. The active address count stood at 587.72K, showing that Ethereum remains popular among active users. However, the number of zero-balance addresses increased by 11.29%, signaling possible profit-taking or abandoned wallets, which could point to bearish sentiment in the market.

Historically, large purchases like the one made by “7 Siblings” are often followed by increased new address activity, as seen in early 2021. This surge in new addresses was a precursor to Ethereum’s impressive price rise to $4,800 later that year. If new addresses continue to stabilize or grow above the 150K mark, it could confirm increasing adoption and a positive future for Ethereum. Conversely, a continued decline in new addresses could suggest weakening demand and push Ethereum’s price below the $2,054 support level.

Liquidity Trends and Funding Volume

Ethereum’s liquidity trends further indicate potential bullish momentum. According to data from CryptoQuant, Ethereum’s funding volume chart from 2023 to March 2025 shows significant fluctuations in trading activity. Funding volume reached a peak of 1.4 billion in mid-2024 before dropping to 167.3 million in early 2023. Recently, funding volume surged again to 800 million, coinciding with the “7 Siblings” purchase of $36.68 million in ETH.

Strong buying pressure near the $2,925 price point suggests that if this volume remains high, Ethereum could see further upside, possibly reaching $3,500. A drop in funding volume below 400 million would, however, signal a potential correction back toward $2,194. The surge in funding volume in early 2021 also led to a significant breakout, with Ethereum reaching a high of $4,800. If similar conditions unfold, we may see Ethereum experience another breakout if institutional backing continues.

What’s Next for Ethereum?

Ethereum’s market is particularly sensitive to institutional movements, and the recent 17,855.3 ETH purchase could be a sign of bullish momentum. If Ethereum can maintain support above the $2,000 mark and new address activity picks up, a price rally beyond $2,500 could be on the horizon. Further institutional buying pressure could push Ethereum toward a $3,500 target, and potentially even higher if market conditions remain favorable.

However, there’s always a risk. Large institutions wield significant influence, and the potential for a sell-off looms, which could reverse any gains and bring Ethereum’s price back below $2,000. Traders and investors should remain cautious, as the market’s sensitivity to institutional behavior makes Ethereum’s future highly reactive to large purchases and sell-offs.

In conclusion, the recent acquisition of 17,855.3 ETH by “7 Siblings” signals potential bullish momentum for Ethereum, especially if institutional buying continues. The price could rise to $2,500 or even $3,500 if buying pressure remains strong. However, the market’s volatility and the risk of large-scale sell-offs could also lead to a price decline, making it crucial for investors to closely monitor market developments.

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