TL;DR
- ETH fell below $3,000 into the $2,900 zone, and whales resumed buying on exchanges and OTC, with one Wintermute desk purchase moved to Lido.
- Liquid staking topped $43B TVL on Jan. 26 as some whales pledged liquid-staked tokens to borrow and re-buy ETH.
- World Liberty Fi swapped WBTC for ETH via CowProtocol to 22K+ ETH, while an OG whale borrowed on Aave and carried $779M+ unrealized losses; OI hit $16.28B.
Ethereum slipped below $3,000 and into the $2,900 range, and large holders treated the move as a reload point rather than a capitulation signal. Whales are rebuilding ETH exposure around the $2,800 support zone where many accumulated in prior years. Buying showed up on exchanges and through over-the-counter desks, with one wallet sourcing ETH via Wintermute’s OTC desk and then sending the tokens to Lido for liquid staking. That route did not lift open-market pricing, but it did add to staking balances as the market stayed range bound. Holders still lean on staking and lending.
Whales lean on staking loops and DeFi rotations
Liquid staking has been expanding again in recent weeks, recovering from local lows, and the sector held more than $43 billion in value locked as of Jan. 26. The dip is being used to compound positions through staking receipts that can be pledged for liquidity. Because ETH is range bound, some whales are looping: they stake or hold liquid-staked tokens, borrow against them, and recycle proceeds into additional ETH purchases. The approach carries liquidation risk if price swings sharply, but the activity suggests users are managing collateral to avoid automatic liquidations in today’s $2,800 zone.
One notable rotation came from World Liberty Fi, whose known wallet has been actively reshuffling DeFi exposure and moving between wrapped assets. World Liberty Fi shifted from WBTC into ETH, signaling that ETH utility inside DeFi can trump Bitcoin wrappers when yields compress. The wallet routed swaps through CowProtocol and ended with more than 22,000 ETH, according to the on-chain footprint described. Those tokens have not been returned to staking so far. The piece notes WBTC balances fell to 125.33K as its DeFi footprint shrank, while WBTC yield on Aave was described as extremely low.
The trader who shorted on Oct. 10 is now stuck in an ETH long, with unrealized losses over $779 million. The OG whale is amplifying exposure with a borrow-and-buy loop built on Aave. A linked wallet withdrew ETH from Binance, deposited it to Aave, and bought more with borrowed funds, betting the $2,800 range holds. Sentiment sat neutral at 40 points and open interest rose to $16.28 billion from $15.78 billion. More than 75% of traders were long and liquidation-prone, while on Hyperliquid only 51% of whales were long as retail activity thinned in January.
