Ethereum (ETH) is showing signs of strength in a divided market, with its price hovering above the $2,500 level despite mixed investor behavior. While many retail traders are taking profits amid market uncertainty, larger investors—commonly referred to as whales and sharks—are steadily increasing their Ethereum holdings, signaling strong institutional confidence in the asset’s long-term potential.
Institutional Investors Accumulate ETH
Data from blockchain analytics firm Santiment reveals that in the past 30 days, wallets holding between 1,000 and 100,000 ETH have added 1.49 million ETH to their balances. This represents an increase of over $3.79 billion in holdings, pushing the total amount controlled by these larger investors to approximately 27% of Ethereum’s circulating supply.
This uptick in accumulation suggests a growing belief among institutional players and crypto whales that Ethereum may be positioned for a significant upward move. Their buying activity continues even as the broader market remains range-bound, reflecting confidence in Ethereum’s long-term fundamentals and market role.
Retail Profit-Taking Creates Market Divergence
While large players accumulate, retail investors appear to be taking profits. Ethereum has gained around 1.7% in the past 24 hours and remains relatively stable near $2,575. This divergence in behavior between retail and institutional investors highlights a tension in the market. Retail investors are locking in short-term gains, while whales seem to be positioning themselves for larger future returns.
The result has been a period of price consolidation, with ETH fluctuating between support near $2,500 and resistance around $2,620. As the range tightens, a breakout could be on the horizon—one likely driven by which investor class ultimately dominates price action in the coming days.
DeFi Activity Signals Strong Whale Engagement
The increase in whale activity is not limited to simple accumulation. Santiment also notes a significant surge in whale participation across Ethereum’s decentralized finance (DeFi) ecosystem. Transactions related to Ethereum Name Service (ENS) have jumped by over 313%, and activity on lending platforms has surged by more than 200%.
Additionally, whales have been active on Ethereum layer-2 networks like Arbitrum and Optimism. Transfers of stablecoins like USDC and activity on protocols such as Base’s Virtual Protocol have seen triple-digit growth, further emphasizing institutional engagement with Ethereum’s infrastructure.
Ethereum ETFs Reflect Growing Institutional Interest
Ethereum’s strength is also mirrored in its performance on the spot ETF front. U.S.-based Ether investment products experienced 19 consecutive days of inflows before a minor setback, with just $2.1 million in net outflows reported on Friday. Despite this dip, the total inflows over that period reached $1.37 billion, with BlackRock’s iShares Ethereum Trust ETF receiving the majority of the investment.
These steady inflows suggest that major financial institutions continue to see Ethereum as a valuable long-term asset, especially as regulatory clarity around ETFs continues to improve.
Dormant Whale Wallet Awakens, Adds Caution
However, not all whale activity is bullish. A long-dormant Ethereum wallet, inactive for nearly a decade, recently transferred 500 ETH to a Binance wallet. Originally worth just $620 in 2015, this stash is now valued at over $5 million—a staggering 820x return. With another 1,500 ETH ($3.8 million) still sitting in the wallet, investors are concerned this could lead to increased selling pressure if those tokens are offloaded.
While it’s not uncommon for early investors to take profits after years of holding, such large transactions often spark market anxiety, especially during consolidation phases.
Technical Indicators Suggest Key Resistance Ahead
Technically, Ethereum faces a critical test at the $2,620 resistance level. The asset has already broken out of a contracting triangle pattern with resistance at $2,550, which points toward a potential short-term rally. The next major resistance sits at $2,660, which aligns with the 50% Fibonacci retracement from the recent $2,880 high to the $2,441 low.
If ETH can break and hold above $2,660, the path opens toward higher levels such as $2,720 and potentially $2,880. Conversely, failure to break this resistance could send the price back to $2,500 or even lower to $2,440 and $2,420 support zones.
Outlook: Institutional Strength Faces Retail Resistance
Despite ETH being down nearly 48% from its all-time high, the recent accumulation by whales and continued ETF interest point toward underlying strength. Yet, the selling by retail investors and the awakening of long-dormant wallets introduce uncertainty.
Ultimately, Ethereum’s near-term direction will depend on whether institutional demand can outweigh selling pressure. If ETH manages to break above $2,620 with volume support, a strong upward move may follow. Otherwise, the asset may continue to trade sideways until clearer signals emerge.
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