In the past month, Ethereum whales have notably ramped up their holdings in ETH, contrasting with a trend among smaller investors who have been offloading their assets amid a stagnant price environment.
Key Highlights:
Whales have collectively added $3.8 billion worth of ETH over a 30-day period, coinciding with retail investors cashing in on their profits. This accumulation has been particularly pronounced in Ethereum Name Service (ENS), lending protocols, and Layer 2 networks like Arbitrum and Optimism. In the U.S., Ether exchange-traded funds (ETFs) experienced a significant influx of $1.37 billion over a span of 19 days, though this momentum has recently faltered with a small outflow.
Blockchain analytics firm Santiment reports that wallets categorized as whales and sharks, those holding between 1,000 and 100,000 ETH, have amassed 1.49 million ETH — valued at approximately $3.79 billion — in the last month. This latest activity marks a 3.72% boost to their total holdings, which now encompass 41.61 million ETH, equating to nearly 27% of Ethereum’s overall supply.
Whale Accumulation Amid Retail Profit-Taking
Santiment highlights that whale wallets have been increasing their assets during a period when retail traders are cashing out, a behavior often interpreted as a sign of institutional confidence in a volatile market.
Despite the considerable accumulation by whales, the price of Ether has experienced only minor gains, reflecting a rise of just 1.8% over the last two weeks and 3.8% in the past month, according to CoinGecko. Currently, ETH trades around $2,575, which remains nearly 48% below its all-time peak.
The analytics company also noted a significant rise in whale activity linked to Ethereum-based projects. Specifically, there has been a 313.5% increase in transactions associated with the Ethereum Name Service during the second week of July, alongside a 203.8% surge in Ethereum lending protocols. Layer 2 networks have also seen heightened activity, particularly with USDC transfers on Arbitrum and Optimism showing triple-digit growth.
On the institutional front, investments into Ether ETFs have demonstrated robust enthusiasm as well. U.S.-based spot Ether ETFs enjoyed a 19-day streak of inflows, amassing $1.37 billion before encountering a minor outflow of $2.1 million on Friday, as reported by Farside. The majority of these inflows have been directed toward BlackRock’s iShares Ethereum Trust ETF.
In other developments, Ethereum-connected corporate strategies have faced challenges, illustrated by a dramatic 73% drop in shares for SharpLink Gaming during after-hours trading. This decline followed the company’s recent announcement regarding plans to register a significant number of shares for potential resale, just weeks after revealing intentions to allocate up to $1 billion for ETH investments.
Ethereum’s Quest for Price Breakout
As of now, Ethereum is trading around $2,628, having made a modest intraday gain of 0.76%. Market participants are watching closely as bulls endeavor to regain control amid ongoing sideways price movements.
Short-term indicators suggest overbought conditions, with the 30-minute Relative Strength Index (RSI) peaking at 75.07. The Moving Average Convergence Divergence (MACD) reflects positive momentum, with a widening gap between signal lines. On a 2-hour chart, ETH appears to be consolidating between Bollinger Band support at $2,483 and resistance at $2,602, with price action favoring the upper band.
The RSI sits at 65.40, indicating that bullish momentum persists, although it may be nearing its limits. While the MACD remains positive, it is beginning to flatten, which could signal a potential consolidation phase if momentum subsides.
On a more granular 1-minute chart, volatility appears subdued with minimal direction in movement. The RSI has receded from its earlier highs, now hovering around 52.20, while the MACD shows limited strength, pointing toward diminished buying pressure in the short term.
Despite the significant accumulation by whales and the influx of institutional funds, Ethereum continues to encounter difficulties in staging a convincing breakout. A close above the $2,630 level could pave the way toward reaching $2,700, whereas a failure to maintain support at $2,570 might lead to further declines.
The post Ethereum Whales Add $3.8B in ETH as Retail Sells Into Sideways Chop – What is Next for ETH Price? appeared first on Finance Newso.
