Ethereum’s price has recently experienced a significant downturn, falling over 20% since Monday, after struggling to find support during the weekend. Despite this decline, the cryptocurrency has revealed some key insights regarding its recent price action, including which participants are profiting from the slump. A recent analysis by Bravos Research sheds light on the underlying reasons for Ethereum’s bearish performance, while also revealing the identities of key beneficiaries from this market correction. 80% of all ETH was long-term held at levels not seen in years during the past few months, and this has led to a significant shift in market sentiment. A cryptoQuant analysis further reveals that a cohort of large Ethereum whales have been aggressively selling their holdings. This sell-off contributed to the price drop, which saw the highest short positions in history earlier this week. The recent dip also coincided with a trend of long-term holders offloading ETH. According to CryptoQuant, long-term holder supply has decreased significantly over the course of this year. These observations have created headwinds for Ethereum’s recovery efforts. However, the data also reveals strong institutional demand. Large accounts holding between 10,000 and 100,000 ETH have been aggressively buying in recent months, suggesting potential long-term bullish expectations. This activity has been linked to institutions like Bitmine, Bit Digital, and Gamesquare Holdings, among others, who are taking advantage of the discounted prices. The continued accumulation by these big players may signal a sustained bullish trend for Ethereum in the near term, though concerns remain that this could be short-lived if the market turns around again. Bravos Research’s analysis also highlights an interesting correlation between institutional demand and global economic shifts, particularly interest rate changes. As US borrowing rates have dropped recently, large institutions have been increasing their ETH holdings by taking advantage of cheap debt. While these companies have kept their debt levels relatively low so far, the decline in rates may encourage more debt-driven purchases. This could fuel further demand for ETH but may also carry a risk. As rate hikes return, these same institutions could potentially unwind their bullish positions, leading to another market correction. Despite the price drop and uncertainty, institutional demand remains strong, offering potential support for Ethereum going forward.