Ethereum Whales Accumulate While Retail Sells Off
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Recent market activity reveals a significant divergence between large and small Ethereum investors. While retail traders are taking profits, leading to a period of sideways trading, Ethereum whales and sharks (wallets holding 1,000 to 100,000 ETH) have been actively accumulating, adding nearly 1.5 million ETH over the past month, representing a 3.7% increase in their holdings. This accumulation now puts over 41 million ETH, or roughly a quarter of the circulating supply, under the control of these large investors. The price of Ether has remained relatively stable, hovering around $2,625, approximately 45% below its all-time high, suggesting a lack of decisive market direction. However, the sustained accumulation by whales indicates a bullish sentiment among these major players. Further supporting this positive outlook is the increased activity on Ethereum's Layer 2 networks and services. Transaction volumes on Ethereum Name Service (ENS) surged over 300%, and lending protocols saw a more than 200% increase in the second week of July. Transfers of USDC on Layer 2 networks like Base, Arbitrum, and Optimism also experienced triple-digit gains, highlighting the growing adoption of scaling solutions. Institutional interest remains strong, with US spot Ether products experiencing 19 consecutive days of inflows totaling $1.37 billion, primarily into BlackRock's iShares Ethereum Trust, before a minor pullback. This confluence of factors—whale accumulation, rising Layer 2 activity, and robust institutional investment—suggests a potential for future price appreciation once a clear market catalyst emerges. The current sideways price action may be a period of consolidation before a significant upward movement fueled by the substantial holdings of large investors.
