Ethereum price surges: major players buy billions in ETH

Ethereum continues to rise and is trading today at $4,677.90, a 9.58% increase in 24 hours. This puts the price just 5% below the previous all-time high, and the coin has now overtaken Netflix in market capitalization.

The breakout above the $4,000 level only came after four attempts, but now momentum seems to be building.

Major players are buying aggressively

Institutional buyers appear to be the driving force behind this rally. Companies like BitMine and SharpLink have added billions worth of ETH to their balance sheets. BitMine reportedly bought 1.2 million ETH valued at $5.33 billion, while SharpLink acquired 598,800 ETH, worth $2.78 billion. Ethereum ETFs also continue to purchase heavily. On four separate days in the past month, more than $1 billion flowed into these funds. These purchases are reducing the available supply on exchanges, which has dropped by over 1.32 million ETH since the start of the year.

Derivatives market heats up, but sellers push back

It’s not just the spot market that is running hot. The derivatives market is also setting new records. Open interest has climbed to a new high of $33.85 billion, indicating strong capital inflows into long positions. However, it is not all smooth sailing. The Net Taker Volume stands at $464 million, meaning sellers currently have the upper hand. A similar situation occurred during the peaks in May 2021 and December 2024.

Indicators warn of overheating

The MVRV indicator, which measures the difference between market value and realized value, is currently showing a high reading. In 2021, Ethereum stayed above this level for a longer period, but during the 2024 bull run, a top followed shortly after. The futures market also shows signs of overheating, which is often a signal that the market is becoming more prone to corrections.

This creates a tense dynamic. On one side, massive buying by companies and funds creates strong demand and a tight market. On the other side, some technical indicators suggest the market may be getting ahead of itself. Anyone entering now is betting that large buyers will keep pushing and that the price will break the all-time high, with the MVRV remaining high like in 2021, rather than cooling off quickly like in 2024.