While Ethereum’s price action shows consolidation and tests a crucial support level, on-chain data reveals a contrasting narrative of aggressive accumulation by large-scale investors. This institutional activity occurs against a backdrop of short-term market uncertainty.
Institutional Buying Defies Price Weakness
Despite Ethereum trading weaker than Bitcoin in a range between $2,900 and $3,000, significant purchases are being recorded. Data indicates that Tom Lee’s BitMine acquired 35,628 ETH via major exchanges last week. In a separate transaction, a whale associated with over-the-counter trading increased its holdings by 10,000 ETH. This pattern of substantial buying during price declines suggests these investors are willing to endure near-term volatility.
A marked increase in the average order size on spot exchanges further points to institutional accumulation rather than fragmented retail trading. The evidence strongly indicates that major players are systematically building positions.
The $2,900 Support Threshold
Market attention is currently fixed on the $2,900 level, which is viewed as a critical support zone. A sustained break below this point could trigger additional selling pressure, potentially impacting the broader altcoin market. Some capital appears to be rotating into more liquid assets amid the prevailing uncertainty, contributing to Ethereum’s relative underperformance.
BlackRock’s Infrastructure Endorsement
In its Thematic Outlook 2026, asset management giant BlackRock highlighted Ethereum’s central role in the expanding tokenized assets market. The firm identifies the blockchain as core infrastructure for on-chain settlement and fee generation. The report notes that as of early January 2026, Ethereum commanded over 65% of the market share for tokenized assets.
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However, BlackRock also cited potential challenges to this dominance, including increasing diversification across multiple blockchains and a migration of transaction volume to Layer-2 scaling solutions. Ethereum’s future, according to the outlook, will hinge on its ability to generate organic economic activity.
Investor and commentator Kevin O’Leary reiterated his bullish stance on both Ethereum and Bitcoin, though he noted a shifting focus toward the underlying infrastructure, such as data centers powering AI and crypto operations.
Hedging Activity Suggests Cautious Stance
The market continues to operate within a complex regulatory landscape. Analysis suggests that while institutions are accumulating, many are simultaneously hedging their exposure through derivatives rather than liquidating positions outright. This strategy allows them to maintain preparedness for various market scenarios.
The coming period will prove decisive for the $2,900 support level. The substantial accumulation by whales and sustained institutional interest in Ethereum’s foundational role for tokenization presents a stark contrast to the current price weakness, setting the stage for a potential inflection point.
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