- •Three on-chain wallets suspected to be operated by bad actors converted over $38 million worth of DAI into Ethereum in under an hour.
- •Despite the suspicious activity, ETH price held firm above $4,400 while ETF inflows helped absorb volatility.
- •Some traders argue the wallets might be positioning early for a broader market rally rather than seeking to cash out immediately.
Blockchain trackers at Lookonchain and Arkham Intelligence noticed three separate addresses liquidating large stacks of DAI into Ethereum between 6 and 7 AM UTC. Instead of selling or bridging to mixers, the wallets aggressively accumulated 8,637 ETH at an average entry near $4,401. Transfers were split into multiple multimillion swaps executed through CoW Protocol and Convex contracts, a known tactic to reduce price impact across decentralized exchanges.
Rather than triggering panic selling, Ethereum stayed resilient around $4,450. Analysts note that this kind of aggressive buy pressure—no matter the source—often strengthens liquidity depth. If those funds were indeed tied to previous exploits, the move suggests confidence in ETH’s long‑term trajectory. Several traders on X joked that
“even hackers would rather hold Ether than stablecoins right now”.
INSTITUTIONAL FLOWS CONTINUE SUPPORTING PRICE
While whale movements dominate headlines, regulated ETF vehicles have been quietly accumulating. Recent reports show nine US listed Ethereum funds absorbing more than 14,000 ETH this week, offsetting potential outflows from speculative wallets. Technical analysts on TradingView maintain that Ethereum is holding a stable structure between $4,200 support and $4,600 resistance. The Relative Strength Index sits near 43, leaving room for upside without entering overheated territory.
Historical studies of similar accumulation patterns highlight that coordinated wallet activity near major price consolidations often precedes explosive rallies. The so‑called Power of 3 formation, referenced by several traders, points to a potential doubling of price before year‑end if current levels hold.
Regulators may view such wallet maneuvers with suspicion, yet the market reaction reflects a maturing landscape. Instead of collapsing under fear, investors shrugged off the origin of the funds and focused on the outcome, Ethereum continues to attract buyers across every sector of the spectrum.
Whether these mystery wallets belong to hackers, funds, or clever swing traders, one message is clear. Ether remains the asset of choice when it comes to long‑term conviction, particularly when volatility favors the bold rather than the patient. Market participants now await follow‑up movements confirming whether this was accumulation or strategic misdirection designed to confuse on‑chain spectators monitoring rapid capital shifts.