Ethereum has entered accumulation territory, with on-chain data showing significant buying activity by mega whales — investors holding over 10,000 ETH — as prices dipped over the weekend and rebounded early Monday.
Large ETH Holders Accumulate Despite Volatility
Over the past 30 days, Ethereum’s largest wallet addresses have expanded rapidly, with more than 200 new mega whale addresses recorded, according to blockchain analytics firm Glassnode. This signals strong institutional and high-net-worth interest despite short-term market weakness.
One whale address alone acquired nearly $300 million in Ether through over-the-counter trading at Galaxy Digital, now holding over 79,000 ETH. The increase in such large holdings suggests long-term confidence in Ethereum’s future, regardless of short-term price swings.
ETF Inflows and Institutional Demand Fuel Accumulation
BlackRock’s iShares Ethereum Trust ETF has seen ten consecutive days of inflows, totaling around $1.7 billion. According to Dune Analytics, ETH holdings in exchange-traded funds have surged over 40% in just the last month.
This ETF-driven demand has sharply reduced available ETH supply on the open market, adding upward pressure on prices.
Price Recovery Follows Weekend Dip Below $3,400
Ether fell briefly below $3,400 over the weekend but rebounded to above $3,560 on Monday. Analysts attribute this bounce to shifting macroeconomic sentiment.
Expectations of monetary easing are creating a bullish tailwind for digital assets, as the cooling U.S. labor market hints at possible Federal Reserve rate cuts.
August Remains a Historically Volatile Month
Despite this bullish activity, August has historically been a difficult month for Ethereum. The asset posted double-digit losses in both August 2023 and 2024, although it soared 35.6% in August 2021 during the bull market.
Cautious optimism surrounds ETH’s performance this month, especially given the accumulation trend among institutional players and long-term whales.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.