Ethereum's Resurgence: Whales and Institutions Fuel Historic Accumulation

Ethereum is currently experiencing a significant surge in whale accumulation and institutional investment, reminiscent of past bull market trends. This renewed interest, marked by substantial ETH purchases by large holders and record inflows into Ethereum-based investment products, signals growing confidence in the cryptocurrency's future.

Whales Accumulate as Retail Exits

Ethereum whales, defined as wallets holding between 1,000 and 10,000 ETH, have demonstrated their strongest net buying activity since 2018. On a single day, these large investors accumulated over 818,000 ETH, equivalent to approximately $2.5 billion. This aggressive accumulation contrasts with a period where retail investors have been taking profits, suggesting a strategic positioning by major players.

Key takeaways:

• Over 818,000 ETH ($2.5 billion) accumulated by whales in a single day.

• This marks the highest daily inflow for this cohort in over six years.

• Whale holdings now exceed 16 million ETH, up from 11.9 million ETH a year ago.

Surging Institutional Inflows

Alongside whale activity, institutional demand for Ethereum has seen a remarkable increase. Ethereum-focused investment funds attracted $583 million in a single week, pushing year-to-date net inflows to $2.28 billion. This surge in institutional interest is partly attributed to the approval of spot Ethereum exchange-traded funds (ETFs) in the U.S. in July 2024, providing direct institutional exposure to ETH.

• ETH ETFs recorded over $530 million in inflows in one week, five times their recent weekly average.

• BlackRock's iShares Ethereum Trust (ETHA) alone accounted for nearly $102 million of recent inflows.

• Total year-to-date inflows into Ethereum investment products have reached $2 billion.

Mirroring Past Bull Trends

Analysts are drawing parallels between current Ethereum price action and its behavior before major breakouts in 2017. Despite recent consolidation within a $2,150 to $3,600 channel, the underlying setup is seen as similar to the period preceding the 2017 ICO boom. The current drivers, including ETFs, staking, and tokenization, are different but are creating a similar coiling effect below resistance levels.

• Ethereum's price action is consolidating, similar to its 2017 breakout pattern.

• The 50-week and 200-week exponential moving averages are providing strong support.

• Short-term price targets of $4,000 are being projected, with some analysts foreseeing a potential rise to $10,000.

Staking and Network Strength

Ethereum's network strength is further bolstered by record-high staking activity, with over 34.6 million ETH (nearly $90 billion) now locked in its Proof-of-Stake system, representing almost 28% of the total supply. Additionally, activity on Ethereum's Layer 2 networks is rising, and accumulation addresses (wallets that have never sold) are at an all-time high, indicating a long-term holding sentiment among many investors.

Sources

• Ethereum whales post strongest net buying since 2018, Cointelegraph.

• Ethereum ETF Weekly Inflows Surge Above $500 Million, The Defiant.

• Ethereum Sees Historic Momentum With Nearly $1B In Monthly Inflows, Yahoo Finance.

• Ethereum Whale Buying Mirrors 2017 Trend, ETH Price Boom Ahead?, The Crypto Times.

• Ethereum Whales Buy $3.8B in ETH as Retail Exits, ETF Inflows Stall, The Market Periodical.