The market’s at a point where “buy the fear” is key for a trend shift. 

In other words, keeping an eye on smart money is crucial to ride FOMO while managing volatility. Specifically, for Ethereum [ETH], this seems especially important given current trader positioning.

Arkham Intelligence reports an ETH whale opened a massive $537 million long at $3,175. But ETH’s 4.7% drop on the 12th of December pushed the position into $20.5 million of unrealized losses.

Source: Coinglass

The fallout? Ethereum is seeing a major liquidation shakeout. 

Data from CoinGlass shows that the largest single liquidation happened on Hyperliquid, with the ETH-USD position valued at $5.6 million. In fact, over the past 24H, ETH has led total liquidations, which topped $120 million.

In essence, ETH’s price is clearly stuck in a tug-of-war between fear and greed, with the $3k level acting as a key support that traders are watching closely.

However, given whale positioning, the stakes couldn’t be higher.

Ethereum approaches a rare realized price level

Whales holding 100k+ ETH are seeing their realized price tested. 

According to CryptoQuant data, Ethereum whales (white band) are approaching the current ETH price (blue band), which is a rare event. In fact, over the past five years, this event has occurred only four times.

Notably, each time this occurs, it triggers strong accumulation waves that push both bands higher. In simple terms, whales buy the dip, absorb selling pressure, and safeguard their positions from losses.

Source: CryptoQuant

That said, with greed still in play, the risk of capitulation can’t be ignored. 

Ethereum whales have been loading up on large long positions in a highly volatile market, which raises the stakes. If ETH slips below the whale realized price, it could trigger liquidations and add downside pressure.

For now, the $3k level remains fragile. If greed continues to dominate, a breakdown becomes more likely. On the flip side, a spike in this metric could signal the start of Ethereum’s fifth major accumulation phase.

Final Thoughts

• Etheruem is locked in a fear-vs-greed battle as whales pile into large longs while price hovers near the critical $3k support.
• A break below whale realized price could trigger liquidations, while a bounce may spark another accumulation phase.