Loading News...
Loading...
Loading News...
VADODARA, December 31, 2025 — A wallet associated with BitMEX founder Arthur Hayes executed a $1.5 million purchase of ENA and ETHFI tokens, according to on-chain data from Lookonchain. This latest crypto news emerges as the cryptocurrency market grapples with extreme fear sentiment, with the Fear & Greed Index registering a score of 21/100. Market structure suggests this accumulation pattern mirrors strategic positioning during previous capitulation phases, similar to the 2021 correction when smart money began accumulating during retail panic.
Historical analysis indicates that significant wallet activity from high-profile investors often precedes major market inflection points. The current extreme fear sentiment, with a score of 21/100, represents one of the most bearish psychological environments since the 2022 bear market trough. Similar to the 2021 correction when Bitcoin tested the $29,000 support level, current market conditions are characterized by retail capitulation and institutional accumulation. On-chain data indicates that whale wallets have been steadily accumulating Ethereum-based assets despite the broader market downturn, creating a divergence between price action and accumulation patterns.
Related developments in this market environment include exchange delistings amid extreme fear sentiment and record Ethereum transaction volumes despite negative price momentum.
According to on-chain data from Lookonchain, a wallet presumed to belong to BitMEX founder Arthur Hayes purchased 4.86 million ENA tokens worth approximately $986,000 and 697,851 ETHFI tokens worth approximately $485,000. The total transaction value of $1.47 million represents a significant accumulation event during a period of extreme market pessimism. This follows previous accumulation patterns from the same wallet address, suggesting a systematic accumulation strategy rather than opportunistic trading. The transactions occurred as Ethereum traded at $2,970.02, representing a 0.18% decline over the previous 24 hours.
Market structure suggests Ethereum is currently testing a critical Fibonacci support level at $2,850, which represents the 0.618 retracement from the 2024 all-time high. The Relative Strength Index (RSI) for ETH stands at 32, indicating oversold conditions but not yet at extreme capitulation levels. Volume profile analysis shows significant accumulation between $2,900 and $3,100, creating a potential order block that could serve as support. The 200-day moving average at $3,250 represents immediate resistance, while the 50-day moving average at $3,450 creates a secondary resistance zone.
Bullish invalidation for this accumulation thesis occurs if Ethereum breaks below the $2,750 support level, which would indicate a failure of the current accumulation zone. Bearish invalidation occurs if ETH reclaims the $3,300 level with conviction, suggesting the correction has concluded prematurely. The current price action resembles the 2021 correction pattern where Ethereum tested the $1,700 support multiple times before beginning its next leg higher.
| Metric | Value |
|---|---|
| ENA Purchase Amount | 4.86 million tokens |
| ENA Purchase Value | $986,000 |
| ETHFI Purchase Amount | 697,851 tokens |
| ETHFI Purchase Value | $485,000 |
| Total Transaction Value | $1.47 million |
| Fear & Greed Index Score | 21/100 (Extreme Fear) |
| Ethereum Current Price | $2,970.02 |
| Ethereum 24h Change | -0.18% |
This accumulation event carries significant implications for both institutional and retail market participants. For institutions, the pattern suggests sophisticated capital is positioning for a potential market reversal, similar to accumulation patterns observed during the 2018-2019 bear market bottom. The strategic focus on Ethereum ecosystem tokens (ENA and ETHFI) rather than direct ETH accumulation indicates a belief in the long-term viability of Ethereum's layer-2 ecosystem and the success of the EIP-4844 proto-danksharding implementation.
For retail traders, this activity represents a potential leading indicator of market direction. Historical patterns indicate that when high-conviction investors accumulate during extreme fear periods, the subsequent 6-12 month returns tend to be substantial. However, the current regulatory environment, including recent compliance actions in South Korea, creates additional headwinds that could delay any potential recovery.
Market analysts on social platforms have noted the divergence between extreme fear sentiment and accumulation activity. One prominent trader commented, "When smart money accumulates during panic, it's usually a signal to pay attention." Another analyst noted the similarity to previous cycles: "This looks like 2019 all over again - institutions accumulating while retail capitulates." The general consensus among technical analysts suggests that current market conditions resemble the accumulation phase of previous bull markets, though timing remains uncertain given macroeconomic headwinds including potential Federal Reserve policy shifts.
Bullish Case: If the current accumulation pattern represents smart money positioning for a market reversal, Ethereum could establish $2,850 as a long-term bottom. A successful test of this support level, combined with continued accumulation from large wallets, could propel ETH toward $3,800 within the next 3-6 months. This scenario assumes successful implementation of Ethereum's scalability roadmap and stabilization of macroeconomic conditions.
Bearish Case: If macroeconomic conditions deteriorate further or regulatory pressure intensifies, Ethereum could break below the $2,750 support level, triggering a liquidity grab toward $2,400. This scenario would invalidate the current accumulation thesis and extend the correction phase into Q2 2026. The extreme fear sentiment could persist, creating additional downward pressure on all cryptocurrency assets.
Source Note: Market data and factual reporting in this article are sourced from original reports. Commentary and analysis provided by CoinMarketBuzz.
Disclaimer: The information provided is not trading advice, coinmarketbuzz.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
coinmarketbuzz.com leverages advanced AI technology to analyze market data. All content is fact-checked and reviewed by our editorial team to ensure accuracy and neutrality.
