Ethereum is attracting renewed whale interest after a major investor known as 7 Siblings spent approximately $22 million to accumulate 10,792 ETH at an average price of $2,038. The purchase followed a sweep of liquidity around the $2,000 level, according to crypto analyst Niels. Attention is now shifting toward higher liquidity zones, where short positions are concentrated around $2,100, $2,200, and $2,400, and traders are watching to see whether renewed buying momentum could trigger a short squeeze in the coming weeks.

7 Siblings Returns With a $22 Million ETH Purchase

According to Lookonchain's X post, the whale known as 7 Siblings has returned to the Ethereum market with another significant purchase, spending $22 million to acquire 10,792 ETH at an average price of $2,038.

In cryptocurrency markets, a whale is a holder whose wallet is large enough that its transactions can affect market liquidity. Because transfers on public blockchains such as Ethereum are visible to anyone, on-chain analytics accounts like Lookonchain are able to identify and report purchases of this scale.

The transaction stands out because 7 Siblings has developed a reputation for accumulating ETH during sharp market corrections. Its latest buy indicates that the investor was willing to increase exposure while Ethereum was under selling pressure.

This activity also reflects the investor's established trading approach of buying during market weakness and selling after price recoveries. Transactions of this scale tend to attract attention from traders who monitor large-scale accumulation closely.

That said, the latest purchase does not confirm that Ethereum has reached a market bottom or that another rally is underway.

Ethereum's $2,000 Liquidity Sweep Shifts Market Focus

The whale purchase came after the ETH price swept liquidity around the $2,000 level. According to crypto analyst Niels, the move wiped out almost all late long positions, placing additional pressure on leveraged traders.

Liquidity sweeps occur when price moves through regions where stop-loss orders or leveraged positions are clustered. Movements of this kind can set off liquidations and lead to short-term volatility in the market.

Per Niels, major short-side liquidity sits above the current ETH price at $2,100, $2,200, and $2,400. These levels are critical to watch because short sellers may be compelled to close their positions if the ETH price rises, and closing a short position requires repurchasing ETH. These liquidity zones, however, are not necessarily destinations; they function more like objectives.

ETH Price Faces Resistance as Market Pressure Builds

Ethereum's market structure remains relevant in light of the recent dip. The $2,000 region is an essential support area, particularly given the recent liquidity sweep and the accompanying whale accumulation.

From a bullish perspective, the first key level to reclaim is $2,100. Breaking above that region, as outlined in Niels' X post, could increase the chances of a bounce toward the $2,200 liquidity area. Beyond that, $2,400 remains a higher potential target if buying sentiment improves. Conversely, persistent rejection near $2,100 could stall recovery efforts and keep pressure on the market.

Derivatives traders are also following these developments closely, with particular attention to open interest and liquidations. Open interest, which tracks the total number of outstanding derivatives contracts, is a widely used gauge of how heavily traders are positioned in the market.

Niels Highlights Three Key ETH Liquidity Targets

In his analysis of ETH, crypto analyst Niels argues that Ethereum can gravitate toward higher liquidity levels once positions above $2,000 have been cleared. He identifies considerable short-side liquidity currently positioned at $2,100, $2,200, and $2,400, suggesting that Ethereum could target these levels in the coming weeks if enough market momentum builds.

This perspective outlines a possible short-squeeze scenario. If Ethereum begins to show recovery, short sellers might face liquidation, generating additional buying pressure in the process. The scenario remains conditional, however, since weak buying momentum or rejection near $2,100 could prevent ETH from reaching the higher liquidity regions.

What Comes Next for ETH?

Ethereum's next move will largely hinge on whether buyers can defend the $2,000 level and build strength above $2,100. Traders will also be keeping tabs on further moves by 7 Siblings to determine whether the recent $22 million purchase was a one-time buy or part of a broader accumulation phase.

A recovery back toward $2,200 could provide the impetus for movement toward $2,400. On the other hand, a breakdown and sustained price action below $2,000 would undermine the bullish view and put additional pressure on ETH.

Whale accumulation in Ethereum represents a significant development, but continued buying and a recovery toward $2,100 will be crucial for a strong rebound.

This article contains market analysis and price projections. These are not guarantees. Crypto markets are volatile. Always DYOR. This is not financial advice.