Institutional Counter-Cyclical Buying: What Is the Short-Term Risk for Ethereum?

2025-12-31 11:20:11

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【Crypto World】Behind Ethereum’s downturn in late December, automated trading and year-end tax-loss harvesting are the main drivers. As institutional investors exit the market during the holiday season, market liquidity is noticeably under pressure.

Interestingly, a well-known institution took a contrarian approach during this decline. Last week, they increased their holdings by 44,463 ETH, bringing the total to approximately 4.11 million ETH, which at the 28 December price of $2,948 accounts for 3.4% of the circulating supply. This substantial investment reveals the institution’s confidence in the future market outlook.

However, risks should not be underestimated. Although Ethereum has risen nearly 5% over the past 30 days, analysts are still issuing warnings—further declines could occur at any time. Short-term volatility remains, and investors need to stay vigilant. The institution’s increased holdings are a bullish signal, but they do not guarantee a smooth price trajectory.

ETH0.38%

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SchrodingerGas

· 2025-12-31 11:49

Wait, 4.11 million coins? This data needs to be verified on-chain before I can believe it. The tax loss selling wave can indeed explain liquidity exhaustion, but institutional buybacks in the opposite direction mean that the bottom has been confirmed? I feel like this is a classic information asymmetry game—retail investors get excited by the numbers, while institutions have already calculated the arbitrage opportunities.

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GateUser-c799715c

· 2025-12-31 11:42

Institutions are bottom-fishing, but this drop is really fierce... better wait a bit before getting on board again.

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MetaverseHermit

· 2025-12-31 11:39

When institutions start buying the dip, I can't sit still. Is this for real? They threw in 44k ETH, that's really bold... But on the other hand, retail investors see institutions increasing their holdings and rush in too, but they should be careful not to get caught off guard.

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memecoin_therapy

· 2025-12-31 11:24

Institutions are buying the dip so aggressively; what are we retail investors still hesitating about? However, this wave of decline doesn't seem to be over yet, so be careful.

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BlockTalk

· 2025-12-31 11:23

Institutions are bottom-fishing this wave, but I feel a bit uneasy, like a knife. The confidence promised for the future market suddenly turns into a risk warning...

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