Ethereum Whales Go on a Buying Spree – Institutional Money Flooding Back In?

Big money moves are shaking up Ethereum as whale wallets bulk up their holdings. Is Wall Street quietly re-entering crypto through the back door?

The signal flashing bullish

When wallets holding 10,000+ ETH start accumulating, traders pay attention. The last time this happened, it preceded a 300% price surge. Now? The pattern’s repeating like a broken record – but with institutional-grade volume.

Smart money playing dumb

Hedge funds love pretending they’ve ‘discovered’ crypto at precisely the right moment (usually late). This accumulation smells like the same old song – just with fancier algorithms and more zeros on the checks.

The bottom line: When whales feed, minnows feast. Or get eaten.

TLDR

• Ethereum whales holding 10,000 to 100,000 ETH have increased their positions by 52% since April.
• Retail investors with 100 to 1,000 ETH have reduced their holdings by 16%, according to CryptoQuant data.
• The recent rise in spot trading volumes suggests a potential trend reversal for Ethereum.
• Ethereum’s ETH/BTC ratio remains stable, indicating relative strength in the asset.
• The Fusaka upgrade, scheduled for December 3, will enhance Ethereum’s scalability and reduce transaction costs.

Ethereum’s spot order activity has shifted, signaling potential institutional re-entry, analysts suggest. Whale investors, holding 10,000 to 100,000 ETH, have increased their positions since April. This trend, coupled with a reduction in retail holdings, points to a possible trend reversal.

Whales Accumulate Ethereum, Retail Sells Off

Since late April, whales have added 7.6 million ETH to their holdings, a 52% increase. Meanwhile, retail investors with 100 to 1,000 ETH have reduced their positions by 16%. According to CryptoQuant data, the large investors’ activity contrasts with retail behavior.

Whales appear to be absorbing sell-side liquidity from smaller holders, a pattern that often signals local bottoms. “This cycle looks similar to previous bottoms, marked by large wallets absorbing sell-side liquidity,” said Shawn Young, chief analyst at MEXC Research.

Ethereum’s spot market saw higher-than-average trading volumes in early November, as ETH dropped to $3,000. This activity is typically observed before major trend reversals or consolidation phases. As the market has seen some stability, analysts are watching closely for further signs of a shift.

Stability and the Role of the ETH/BTC Ratio

Shawn Young pointed to the ETH/BTC ratio holding steady at multi-month lows. This relative stability suggests strength in Ethereum, even as Bitcoin continues to dominate. Young believes this stability, along with rising daily transactions, could signal a strong foundation for ETH.

The daily ethereum transactions increased by 25% since September, further indicating potential strength. This uptick could provide the support needed for Ethereum to build momentum. The improvement in transaction volume aligns with a shift toward higher institutional interest in the crypto market.

“Ethereum’s price action, along with the improved transaction activity, could point to a re-entry of institutional players,” said Lai Yuen, an investment analyst at Fisher8 Capital. Yuen also highlighted the growing Optimism surrounding Ethereum’s future, particularly after a potential end to the U.S. government shutdown.

Fusaka Upgrade Fuels Institutional Interest

Ethereum’s Fusaka upgrade, scheduled for December 3, could further fuel institutional interest. The upgrade will enhance scalability and lower transaction costs by adding dedicated data lanes for rollups. LAYER 2 protocols will benefit from this change, allowing for faster and cheaper transactions.

MEXC’s Young emphasized that the upgrade is essential for Ethereum’s adoption, especially in decentralized finance (DeFi). “The Fusaka update will enhance Ethereum’s ability to handle real-world applications,” Young stated. It could pave the way for more institutions to build on Ethereum’s platform, increasing its adoption.

Furthermore, the upgrade will introduce Peer Data Availability Sampling. This change allows nodes to share smaller pieces of data, reducing bandwidth and hardware requirements. It could lower the barriers to network participation and boost decentralization.

If the current accumulation trend continues, analysts believe Ethereum may enter a consolidation phase. Ethereum’s price holding in the $3,000 to $3,400 range could provide the necessary support for further growth. With the Fusaka upgrade and rising institutional interest, the outlook remains positive for Ethereum’s next steps.

Ethereum is currently trading at $3,560, down by 1.6% in the last 24 hours. Investors and analysts are keeping a close eye on how the market reacts following the Fusaka upgrade. As Ethereum’s development progresses, market dynamics suggest that Ethereum is primed for potential gains in the coming weeks.