The Ethereum Comedy: Institutions Laughing Below $2,000 While ETH Takes a Swoon

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For a select cadre of institutional investors, buying ETH below the ever-elusive $2,000 is akin to snagging a rare vintage wine at a bargain price-delightful, despite the lurking specter of unrealized losses that haunt their portfolios like regretful memories of past romantic entanglements.

Ah, dear reader, we find ourselves witnessing the sixth consecutive month of ETH’s downward spiral-a melodrama reminiscent of a forlorn opera! This prolonged descent marks its longest losing streak since the dark days of 2018. How thrilling!

Tom Lee and K3 Capital: The Dynamic Duo of Ether Accumulation as Staking Ratios Reach Stratospheric Heights

In a plot twist worthy of a soap opera, Tom Lee-our protagonist, the founder of Fundstrat and chief of Bitmine-decided to dive headfirst into the swirling abyss of ETH purchases during that fateful week in February.

On February 18, in a grand gesture worthy of a Shakespearean character, Bitmine snatched up an additional 35,000 ETH, valued at approximately $69.37 million. A fine day for business indeed! This acquisition included the delightful sum of 20,000 ETH from BitGo, worth a princely $39.8 million, and 15,000 ETH from FalconX, a mere $29.57 million.

K3 Capital, not one to miss a chance at fortune, also strutted into the limelight. Data from OnchainLens reveals that a wallet linked to this investment fund nabbed 20,000 ETH for a cool $40.08 million from Binance. Oh, the audacity!

These hefty transactions are a testament to an unwavering belief in ETH’s long-term potential, even as it languishes beneath the $2,000 threshold-a veritable treasure hunt in a barren landscape.

As per the oracle of CryptoRank, it appears that long-term investors are accumulating Ethereum with the fervor of a child hoarding candy during Halloween, even amid this market downturn.

Meanwhile, data from CryptoQuant showcases a dramatic inflow into ETH accumulation addresses-truly the most frenetic period in history. If we turn back the pages of history to 2018, we find that ETH suffered seven consecutive months of decline before making a triumphant recovery. Will history repeat itself, or are we destined for another tragic tale?

“The whales and the largest banks are buying and building on ETH. These are the highest inflows into whale-accumulation wallets we’ve seen. Meanwhile, retail has abandoned it and is calling for its failure. They’re tired and exhausted after watching the price chop inside this massive range for five years,” remarked our sage, Crypto investor Seth.

And lo, another landmark has graced our presence! For the very first time in Ethereum’s illustrious 11-year saga, more than half of the total ETH supply has been staked-like a group of eager participants in a game of musical chairs, ensuring they have a seat when the music stops.

On-chain data platform Santiment proudly announces that over 50% of ETH now languishes in the Proof-of-Stake (PoS) contract, much like coins tossed into a wishing well-only to leave circulation temporarily, rendering them untouchable by the masses.

This enigmatic contract serves as a one-way vault; investors deposit their precious ETH to safeguard the network, while the staked coins frolic away from the trading realm for an indeterminate period.

With each passing bearish cycle, staking activity continues its relentless ascent, akin to a balloon filling with air. As more ETH becomes locked away, the liquid supply diminishes, leading to an intriguing game of supply and demand.

“When over 50% of the supply is locked in staking, liquid supply shrinks. Fewer coins are available for trading. That reduces sell pressure and makes the market more sensitive to new demand,” declared Validator Everstake with a flourish.

Everstake elucidates that 50.18% represents the total ETH imprisoned within the Ethereum PoS contract address, while the remaining 30% engages in active staking-an intricate dance of numbers and percentages.

However, a recent analysis by BeInCrypto dares to suggest that ETH may plunge further to $1,385 in the short term, amidst the most despondent market sentiment we’ve witnessed in eons. What a dramatic turn of events!

Even should this dismal forecast materialize, on-chain data suggests that our valiant large investors and institutions are still positioning themselves for a grand recovery in the long run-a tale of optimism amid the shadows of uncertainty.

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2026-02-19 18:25