Institutional Counter-Cyclical Buying: What Is the Short-Term Risk for Ethereum?

【Crypto World】Behind Ethereum’s downturn in late December, automated trading and year-end tax-loss harvesting are the main drivers. As institutional investors exit the market during the holiday season, market liquidity is noticeably under pressure.

Interestingly, a well-known institution took a contrarian approach during this decline. Last week, they increased their holdings by 44,463 ETH, bringing the total to approximately 4.11 million ETH, which at the 28 December price of $2,948 accounts for 3.4% of the circulating supply. This substantial investment reveals the institution’s confidence in the future market outlook.

However, risks should not be underestimated. Although Ethereum has risen nearly 5% over the past 30 days, analysts are still issuing warnings—further declines could occur at any time. Short-term volatility remains, and investors need to stay vigilant. The institution’s increased holdings are a bullish signal, but they do not guarantee a smooth price trajectory.