Ethereum Whales Split as ETH Price Struggles Below $3,000 in January 2026

Ethereum (ETH) is facing growing market pressure in late January 2026, with whale activity pulling the price in opposite directions. While some large holders are distributing ETH or moving funds to exchanges, others are aggressively accumulating on dips, creating a clear tug-of-war between short-term profit-taking and long-term positioning. This split behavior comes as Ethereum has fallen more than 10% over the past week and erased all its early 2026 gains.

According to BeInCrypto Markets data, Ethereum is down nearly 5% year-to-date and continues to struggle below the key $3,000 psychological level. At the time of writing, ETH was trading around $2,863, reflecting ongoing bearish sentiment across the broader crypto market. Despite the weak price action, on-chain data shows that not all investors are losing confidence.

On the accumulation side, Lookonchain reported that a major OTC whale address, 0xFB7, recently purchased 20,000 ETH worth over $56 million. Over the last five days, this whale has accumulated more than 70,000 ETH, valued at approximately $203 million. This trend aligns with earlier reports showing Ethereum whales adding hundreds of thousands of ETH in a single day. In addition, CryptoQuant data indicates that Ethereum exchange reserves continue to decline, suggesting reduced sell-side supply as large holders move ETH off exchanges into long-term storage.

At the same time, capital rotation among whales remains active. World Liberty Financial, a DeFi project linked to President Trump, shifted exposure from Bitcoin to Ethereum by swapping nearly $8 million worth of WBTC for ETH. Other whale wallets have also rotated BTC holdings into Ethereum, signaling confidence in ETH’s longer-term potential.

However, not all whale signals are bullish. An early Ethereum whale recently deposited 50,000 ETH into Gemini after nine years of inactivity, raising concerns about potential selling pressure. Large exchange deposits often indicate profit-taking or portfolio rebalancing, which can weigh on price.

Despite mixed whale behavior, Ethereum’s network fundamentals remain strong. The seven-day average of active Ethereum addresses has reached a record high of around 718,000, signaling robust network usage. Historically, such bullish divergence between price and network activity has preceded upward price moves. While macro conditions may still influence timing, the combination of strong fundamentals, declining exchange reserves, and ongoing accumulation keeps Ethereum’s long-term outlook firmly in focus.