As Ethereum's volatility stabilizes, on-chain data reveals a significant wealth shift. Whales and sharks have amassed close to a million ETH tokens in three weeks, while retail investors are liquidating their positions. Could this movement signal a new bullish cycle for the second-largest cryptocurrency globally?
Data reveals massive accumulation of 934,240 ETH by large addresses over the past three weeks. During the same period, small holders sold only 1,041 ETH, a negligible figure that nonetheless illustrates a significant trend. This divergence between smart money and retail traders reflects a classic pattern observed before major price movements. The behavior of whales, addresses holding more than 10,000 ETH, often serves as a compass for anticipating the next market phases.
The selling pressure from small investors can be explained by several factors. Recent volatility has shaken the confidence of retail traders, triggering cascading stop losses. Many preferred to secure their positions after weeks of uncertainty. Meanwhile, institutional investors and whales took advantage of this temporary dip to accumulate at attractive prices. This contrarian strategy characterizes players with longer investment horizons and better risk tolerance.
The price of Ethereum has experienced a notable rebound in recent days, directly correlated with this accumulation phase. On-chain data confirms that whale buying pressure has created solid support in current price zones. When large addresses accumulate massively, they remove liquidity from the market, reducing the supply available on exchanges. This dynamic mechanically creates bullish pressure on price.
Volatility has also cooled during this accumulation period, dropping from elevated peaks to more contained levels. This stabilization often occurs after retail distribution phases and precedes more pronounced directional moves. Experienced traders closely monitor the evolution of volume and on-chain metrics to identify these regime shifts.
Inflows to cold wallets are also increasing, suggesting these whales are not buying to sell in the short term. This strategic accumulation indicates strong conviction in Ethereum’s medium-term prospects. Current resistance levels could break if this dynamic continues, paving the way for a test of higher price zones.
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Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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