Alphractal reports that the cryptocurrency market is currently experiencing its most bearish phase since 2023, with total liquidations reaching $2.59 billion. Of this amount, Ethereum alone accounts for $1.16 billion in losses.
The price of Ethereum (ETH), the second-largest cryptocurrency by market capitalization, dropped to around $2,300 as risk aversion sentiment intensified.
While some investors incurred losses and exited their positions, others saw the market downturn as an opportunity to buy at a discounted price rather than a signal of a market breakdown.
Investors See the Dip as an Opportunity
The recent sharp decline pushed Ethereum to its lowest level since July 2025, based on TradingView data. Despite this significant drop, certain investors continued to accumulate ETH in large quantities, even amidst widespread fear in the market.
Two wallets known as “7 Siblings” and “0xB7” were at the forefront of this accumulation trend, collectively investing $57.44 million in Ethereum.
The “7 Siblings” wallet has a history of buying ETH during market corrections and recently added $31.08 million worth of Ethereum to its holdings. On-chain data suggests unfilled buy orders, indicating a strong intent for further accumulation. The wallet now holds approximately $599.53 million in ETH.
Similarly, the “0xB7” wallet also capitalized on the market downturn by purchasing 10,000 ETH valued at $26.36 million, bringing its total Ethereum holdings to around $294.79 million.
Accumulating assets during a period of uncertainty, where sentiments oscillate between hopes of recovery and deepening bearishness, often signifies a long-term investment strategy at perceived discounted levels.
However, it is essential to note that such strategic positioning does not guarantee accurate predictions. While the recent accumulation hints at a potential local bottom for Ethereum, there is still a possibility of further downside.
High-Stakes Players and Significant Losses
Not all large-scale bets on Ethereum have been profitable. BitMine’s Ethereum Digital Asset Treasury (DAT) is currently facing an unrealized loss estimated at $6 billion.
Despite accumulating Ethereum steadily, BitMine remains one of the largest corporate holders of the asset, framing its strategy as a long-term growth opportunity.
Following substantial losses when Ethereum dropped below $3,000, BitMine began staking its holdings. As of January 12th, the firm had staked approximately $3.33 billion worth of ETH to generate yields as a partial hedge against market risks.
These instances highlight the fact that institutional players are not immune to market volatility. Another whale, known as “HyperUnit” and linked to Garrett Jin, exited its Ethereum position during the recent sell-off, locking in an estimated $250 million loss.
Prior to liquidating, HyperUnit held $299.46 million worth of ETH. The wallet’s Ethereum holdings now amount to just $53.
Collectively, these scenarios underscore the magnitude and severity of the post-crash sell-off. Investors who made aggressive bets on Ethereum have faced significant losses, indicating that recent accumulation does not guarantee a definitive market bottom, and prices could continue to decline.
Where is the Market Liquidity Heading?
Analyzing liquidity and volume metrics provides insights into Ethereum’s current market dynamics.
The Money Flow Index (MFI), which monitors capital flows, indicates a sustained dominance of selling pressure. With the MFI below the neutral 50 level and hovering around 41, sellers currently outweigh buyers.
Further confirmation from volume metrics comes from the Chaikin Money Flow (CMF), showing a negative trend, signaling a prevalence of selling volume over buying volume.
Source: TradingView
The CMF has remained below zero since re-entering bearish territory after a brief exit in July 2025. This persistent weakness suggests a continued downside risk for Ethereum, with a potential revisit to the $2,000 price level unless there is a significant shift in market sentiment towards recovery.
Closing Remarks
- Despite capital outflows, committed buyers continue to acquire Ethereum, with two whales investing over $57 million in the asset.
- Several previously bullish investors faced substantial losses and liquidated their positions, including the Tom Lee-backed BitMine.
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Rewritten: Seeing the surprise party waiting for him left him in disbelief.