Is Ethereum replacing tokenized gold and silver as the new on-chain hedge?

Ethereum has stayed above the $3,000 mark because the begin of the yr as gold and silver continued to make new highs. The latter two have emerged as key belongings for on-chain merchants, with tokenization making it potential.

The altcoin is down 1% on the day, whereas gold and silver had been up by 1% and 1.85%, respectively. Curiously, the every day buying and selling volumes had been trying promising, however do the latest actions signify capital rotation into Ethereum?

Is capital rotation underway?

As per knowledge from Lookonchain, a whale swapped tokenized gold [XAUT] and iShares Silver Belief Tokenized ETF [SLVon] to ETH. This got here as the 2 metals hit new peaks, igniting profit-taking.

The whale dumped 326 XAUT price $1.53 million and 10,978 SLVon valued at $936K for 724 ETH valued at $2.40 million. This motion signaled capital rotation, which may very well be a precursor to a crypto market rebound.

Supply: Lookonchain

In the meantime, there have been different whales that had been nonetheless accumulating silver. Information from BSCscan showed {that a} person purchased greater than 593 SLVon price $50K.

The outcomes indicated that it was not but a whole capital rotation, however establishments and whales had been making a brand new case.

ETH accumulation intensifies

As an illustration, Ethereum ETFs noticed greater than $520 million in capital injection, additional backing the aforementioned rotation. This accumulation totaled 158,545 ETH because the twenty ninth of December, when 2025 ended.

Wanting on the knowledge on a weekly scale, it indicated that there have been constructive inflows because the yr began. That’s, 13.9K, 8.46K, and 136.2K tokens had been purchased, respectively, over the previous three weeks.

Supply: Ali Charts/X

Whales had been additionally stacking up ETH after the latest addition. A brand new pockets bought 6,000 ETH price over $19 million from Binance and transferred them to Aave Protocol.

The market was displaying blended emotions as some whales confronted pressured promoting. As an illustration, FG Nexus sold a few of its ETH holdings, whereas one other whale closed their positions after pressured liquidation.

With the information not clearly defining route, will ETH value motion make clear the projection?

Bulls defend a key assist stage 

The weekly value motion chart confirmed that Ethereum was buying and selling above its yearly open at $2,972. This supported the buildup course of that’s underway for ETH.

Staying above this demand stage that has proved to be enticing for whales and establishments may imply power. Dips under the extent would take out impatient holders or moderately invalidate the outlook.

Supply: ETH/USDT on TradingView

As extra capital strikes into Ethereum from gold and silver, ETH value may rally towards $4,000+. Though the timelines for this endeavor had been unclear, the indicators had been evident.

Remaining Ideas

• Capital rotates from gold and silver to ETH after the previous two hit new highs.
• Whales and establishments intensified their Ethereum accumulation, defending the yearly open value.