Arthur Hayes, co-founder of BitMEX, has made headlines with a significant $8.4 million cryptocurrency purchase in the past 24 hours, buying 1,500 ETH worth $6.35 million, along with notable positions in blue-chip DeFi tokens such as LDO, ETHFI, and PENDLE [1]. This move marks a sharp reversal from his earlier bearish outlook, where he predicted ETH would fall to $3,000 [1]. The timing of the purchase coincides with Ethereum breaking through the $4,000 psychological price barrier, a level it had previously rejected multiple times [1].

Hayes’s strategy includes acquiring 425,000 LDO tokens valued at around $557,000, 420,000 ETHFI tokens valued at $517,000, and 185,000 PENDLE tokens worth approximately $1.02 million [1]. This aggressive buying spree aligns with broader institutional interest in Ethereum, as a large, unidentified whale acquired 221,166 ETH valued at $946 million through Galaxy Digital, FalconX, and BitGo in the past week [1]. Another 49,533 ETH ($212 million) was added to this whale’s holdings in a single day [1].

Ethereum’s price surge to over $4,300 has been fueled by substantial institutional adoption, with publicly traded companies aggressively expanding their Ethereum holdings. BitMine Immersion Technologies holds 833,137 ETH valued at over $3 billion, while SharpLink Gaming controls 521,900 ETH valued at approximately $2 billion [1]. The growing institutional interest is further supported by Ethereum ETF inflows, with $461 million in net inflows on one day alone, outpacing Bitcoin’s $403 million [1]. BlackRock’s ETHA ETF absorbed over $100 million in a single day, pushing its net assets beyond $11 billion [1].

This institutional buying has pushed Ethereum’s market capitalization past $523 billion, surpassing Mastercard’s market cap of $519 billion [1]. The rise has also restored Vitalik Buterin’s net worth to $1.04 billion through his on-chain Ethereum holdings [1]. Gas fees have dropped to $0.53, historically indicating increased on-chain activity and potential price surges [1]. According to Glassnode, the number of ETH addresses holding over 10,000 tokens reached 868,886, the highest in a year [1]. Additionally, the Ethereum SOPR (Spent Output Profit Ratio) has hit yearly highs, suggesting a large portion of the supply is being moved at a profit [1].

Technical indicators also suggest a strong upward trajectory. Analysts describe Ethereum’s breakout as a textbook Wyckoff Accumulation pattern, typically preceding sustained price increases [1]. The asset has broken a 1.5-year resistance level and is currently riding a six-week streak of green weekly candles out of seven [1]. Some technical models project potential price targets as high as $8,000, based on the breakout of a multi-year symmetrical triangle pattern [1]. Polymarket traders assign a 96% probability to ETH reaching $4,400 and a 76% chance of hitting $5,000 before year-end [1].

Despite the bullish momentum, analysts caution that Ethereum may face a correction. Historical data shows repeated resistance between $4,000 and $4,350, followed by significant price corrections across four distinct cycles [1]. The current rally has the highest volume yet, suggesting growing institutional interest, but also indicates a potential top as open interest has surged from 2 billion to over 12 billion [1]. This level of open interest has historically coincided with major market tops and subsequent corrections. Analysts predict short-term bearishness, targeting support zones between $3,200 and $3,600, while the longer-term trend remains upward, with each correction leading to higher ultimate highs [1].

Hayes’s buying spree reflects a broader shift in sentiment toward Ethereum, particularly as institutional investors and major players continue to build treasuries and ETFs gain traction. However, as Buterin and others warn, excessive leverage in these treasuries could pose risks in the event of a market downturn [1].

Source: [1]Arthur Hayes Scoops Up $8.4M in ETH and Blue-Chip Alts in Latest Buying Spree (https://cryptonews.com/news/arthur-hayes-buys-8-4m-in-eth-and-alts/)