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10% Bounce Hope Rise As Whales Buy

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Ethereum Whales

Ethereum is trying to stabilize after weeks of heavy selling. The price is holding near the $1,950 zone, up around 6% from its recent low. At the same time, the biggest Ethereum whales have started accumulating aggressively.

But short-term sellers and derivatives traders remain cautious, creating a growing tug-of-war around the next move.

Biggest Ethereum Whales Accumulate as Bullish Divergence Stays Intact

On-chain data shows that the largest Ethereum holders are positioning for a rebound. Since February 9, addresses holding between 1 million and 10 million ETH have increased their holdings from around 5.17 million ETH to nearly 6.27 million ETH. That is an addition of more than 1.1 million ETH, worth roughly $2 billion at current prices.

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Ethereum Whales
Ethereum Whales: Santiment

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This accumulation aligns with a bullish technical signal on the 12-hour chart.

Between January 25 and February 12, Ethereum’s price made a lower low, while the Relative Strength Index, or RSI, formed a higher low. RSI measures momentum by comparing recent gains and losses. When price falls, but RSI rises, it often signals weakening selling pressure.

This bullish divergence suggests downside momentum is fading.

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Bullish Divergence
Bullish Divergence: TradingView

The structure remains valid as long as Ethereum holds above $1,890, as the same signal flashed even on February 11 and still seems to be holding. A breakdown below this level would invalidate the divergence for now and weaken the rebound case.

For now, whales appear to be betting that this support will hold.

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Short-Term Holders Are Selling?

While large investors are accumulating, short-term holders are behaving very differently.

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The Spent Coins Age Band for the 7-day to 30-day cohort has surged sharply. Since February 9 (the same time when the whale pickup started), this metric has risen from around 14,000 to nearly 107,000, an increase of more than 660%. This indicator tracks how many recently acquired coins are being moved. Rising values usually signal possible profit-taking and distribution.

ETH Coins
ETH Coins: Santiment

In simple terms, short-term traders are exiting positions. This pattern appeared earlier in February as well. On February 5, a spike in short-term coin activity occurred near $2,140. Within one day, Ethereum dropped by around 13%.

That history shows how aggressive selling from this group can quickly reverse moves. As long as short-term holders remain active sellers, upside moves are likely to face resistance.

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Derivatives Data Shows Heavy Bearish Positioning

Derivatives markets are reinforcing this cautious outlook. Current liquidation data shows nearly $3.06 billion in short positions stacked against only about $755 million in long leverage. This creates a heavily bearish imbalance with almost 80% of the market betting on the short side.

Shorts Dominate
Shorts Dominate: Coinglass

On one hand, this setup creates fuel for a potential short squeeze if prices rise. On the other hand, it shows that most traders still expect further weakness. This keeps momentum muted but keeps the bounce hope alive if the whale buying pushes the prices up, even a little bit, crossing past key clusters.

On-chain cost basis data helps explain why Ethereum struggles to break higher. Around $1,980, roughly 1.58% of the circulating supply, was acquired. Near $2,020, another 1.23% of supply sits at breakeven. These zones represent large groups of holders waiting to exit without losses.

Cost Basis Cluster
Cost Basis Cluster: Glassnode

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When price approaches these levels, selling pressure increases as investors try to recover capital. This has repeatedly capped recent bounces. Only a strong leverage-driven move or short squeeze would likely be powerful enough to push through these supply clusters.

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Until then, these zones remain major barriers.

Key Ethereum Price Levels To Track Now

With whales buying and sellers resisting, Ethereum price levels now matter more than narratives.

On the upside, the first major resistance sits near $2,010. A clean 12-hour close above this level would increase the probability of short liquidations. And it sits near the key supply cluster.

If that happens, Ethereum could target $2,140 next, a strong resistance zone with multiple touchpoints. It also sits around 10% from the current levels. On the downside, $1,890 remains the critical support. A break below this level would invalidate the bullish divergence and signal renewed downside pressure. Below that, the next major support sits near $1,740.

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Ethereum Price Analysis
Ethereum Price Analysis: TradingView

As long as Ethereum holds above $1,890 and continues testing $2,010, the rebound structure remains intact. A sustained breakdown below support would cancel the current recovery attempt.

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Crypto World

Australia to Mandate Crypto Licensing Under New Law

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Australia to Mandate Crypto Licensing Under New Law

Australia has passed legislation that will bring many digital asset platforms and tokenised custody platforms under the country’s financial services licensing regime.

The Corporations Amendment (Digital Assets Framework) Bill 2025 has now cleared both houses of the Australian Parliament, according to parliamentary records, marking the biggest step yet in Canberra’s push to create a dedicated regulatory framework for digital assets.

Introduced in November 2025, the bill amends the Corporations Act and ASIC Act to regulate digital asset platforms and tokenised custody platforms, with the stated aim of improving consumer protection, market integrity and regulatory certainty.

The bill now awaits royal assent, the final step before becoming law. It is set to take effect 12 months after assent, with an additional transition period for businesses to comply.

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The bill requires crypto operators, including exchanges and custody platforms, to obtain an Australian Financial Services Licence (AFSL) from the Australian Securities and Investments Commission (ASIC), the country’s financial regulator.

Source: DECA

The Digital Economy Council of Australia (DECA), an industry group representing Australia’s digital economy, praised the development in a statement on LinkedIn.

“For the first time, we have a legislative framework that directly addresses digital asset platforms and it provides long-awaited clarity for businesses, investors and regulators, and marks a shift from uncertainty toward implementation,” DECA said.

Related: Australia fines local Binance unit $6.9M over client onboarding failures

Addendum clarifies treatment of MPC and crypto custody under new law

Jazz Ozvald, former assistant director of digital asset policy at the Commonwealth Treasury, took to LinkedIn to express delight at the milestone in passing the bill.

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He noted that the government also tabled an Addendum to the Explanatory Memorandum, which includes additional detail about how the bill is intended to apply where digital tokens are factually controlled through multi-party computation (MPC).

Source: Jazz Osvald

MPC is a cryptographic technology used to secure crypto wallets by splitting control between multiple parties, so no single person has full control. Transactions can only be approved when enough parties work together, making it harder for funds to be stolen or misused.

Related: Google targets 2029 post-quantum migration as threats draw nearer

The addendum says that the law only applies to platforms that actually hold crypto for customers, rather than just providing technology that helps control it, even in shared-control setups like MPC.

Magazine: Nobody knows if quantum secure cryptography will even work

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