Key Insights:
- World Liberty Financial (WLFI) rotated $8.08 million from Wrapped Bitcoin into Staked Ether, as Ethereum traded near $2,865.
- Ethereum price stayed under $3,000, with traders maintaining a short bias amid bearish market structure.
- The rotation showed strategic rebalancing, with limited immediate impact on spot Ethereum price action.
World Liberty Financial shifted capital from Bitcoin to Ethereum on Jan. 26, rotating more than $8 million as Ether traded near weekly lows.
On-chain data showed WLFI swapped 93.77 Wrapped Bitcoin, valued at about $8.08 million, for 2,868 Staked Ether roughly six hours earlier. The transaction occurred as the Ethereum price hovered near $2,865, a level that traders tracked as short-term support during a broader market pullback.
The move, flagged by Lookonchain, marked a clear portfolio adjustment away from Bitcoin exposure toward Ethereum. The timing drew attention as ETH underperformed Bitcoin in recent sessions and remained capped below $3,000.
Rotation Hits as Ethereum Price Grinds Lower
Ethereum price extended its slow decline into the weekend, staying below the descending resistance formed since October. Sellers repeatedly defended rebounds toward $3,000, while buyers focused on protecting the mid-$2,800 zone.
WLFI executed the rotation through Cow Protocol settlements via a Gnosis Safe, breaking the swap into multiple fills. That structure reduced market impact and suggested deliberate rebalancing rather than urgent execution.
Arkham-linked data associated the wallet with World Liberty Financial, which has actively adjusted allocations across major crypto assets during periods of heightened volatility. The use of Staked Ether, rather than spot ETH, also pointed toward yield exposure alongside price positioning.
Despite the size of the swap, Ethereum price showed little immediate reaction. ETH remained range-bound, reflecting thin weekend liquidity and cautious trader sentiment.
Ethereum Traders Keep Short Bias as Structure Stays Bearish
Market participants continued to frame Ethereum price action as locally bearish. Lennaert Snyder said ETH was still grinding lower, with the broader structure favoring downside setups unless price reclaimed lost levels.
“The local trend is still confirmed down, so I’m looking for triggers to enter shorts,” Snyder said. He added that price first needed to clear nearby buy-side liquidity before offering cleaner short entries.
Snyder identified the current weekly low near $2,865 as a potential downside target if sellers regained control. He noted that long setups looked limited under current conditions and said he planned to stay sidelined if triggers failed to appear before the new week.
Derivatives data supported the cautious tone. Funding rates cooled after earlier spikes, while open interest remained stable rather than expanding. The combination suggested that traders reduced leverage instead of positioning aggressively for a rebound.
On-Chain Context Tempers Bullish Interpretation
WLFI’s rotation alone did not shift the broader Ethereum narrative. Moving funds into Staked Ether limited immediate spot-market demand, muting any short-term price impact.
Execution through Cow Protocol also signaled an intent to minimize slippage rather than chase momentum. Analysts viewed the flow as a strategic allocation change instead of a directional bet on an imminent ETH rally.
Exchange balance data showed no sharp drawdowns tied to the transaction, reinforcing the view that broader market participation remained cautious. Without sustained inflows or a technical reclaim above resistance, traders kept downside risks on the table.
What the Market Watches Next
Ethereum price action centered on whether $2,850–$2,880 support continued to hold. The shared ETH perpetual futures chart showed price compressing below overhead liquidity, with repeated failures near the $3,010–$3,050 zone.
The structure remained bearish unless price first swept buy-side liquidity above $3,000. Without that move, the chart projected a downside continuation, with $2,780–$2,800 emerging as the next liquidity target if the weekly low failed.
On the upside, bulls needed a clean break above $3,000, followed by a reclaim of descending resistance near $3,150–$3,200, to shift short-term structure. Absent that reclaim, Ethereum price remained driven by structure and liquidity rather than isolated institutional rotations.
Traders headed into the week watching support durability, leverage behavior, and whether price first mitigated overhead liquidity or extended lower.