Major Ethereum investors heavily accumulating ETH, suggesting potential future price rally
In the past five months, whales holding between 1,000 to 100,000 ETH tokens have increased their holdings by 14%. This surge in institutional interest reflects the robustness of Ethereum's DeFi and network activity, as noted by the inflow of investors and capital. Over the past three months, a significant $9.9 billion in netflows to the Ethereum chain have been observed.
One of the key contributors to this growth is the expansion of institutional holdings. Although the specific institutions are not named, it is indicated that institutional inflows have been driven significantly by Spot-ETH ETFs launched in July 2024. These ETFs hold about 5% of Ethereum's supply by mid-2025, demonstrating strong institutional participation.
The largest investment flows are associated with these Spot-ETH ETFs, as well as corporate treasuries such as BitMine Immersion Technologies (BMNR) that offer indirect ETH exposure. However, specific amounts per institution are not detailed.
Ethereum's price is currently trading at $4,422, up 0.9%, and the ETH market is showing positive signs. Ethereum ETF netflows have been significant since August, with inflows of $3.87 billion in August and $1.08 billion last week. On the other hand, Bitcoin's ETF netflows show outflows of $751.12 million in August and inflows of $440.71 million last week, indicating a shift in investor preference towards Ethereum.
This shift is further evidenced by Ethereum's outperformance of Bitcoin. While Bitcoin has delivered returns of 34%, Ethereum has delivered returns of 132%. The whale portfolio rebalancing from BTC into ETH is also fueling Ethereum's momentum.
Tom Lee, a well-known cryptocurrency analyst, has referred to Ethereum's four-year consolidation or base as the most "compelling opportunities into year-end." He expects a breakout from the ongoing base to trigger a massive upside for Ethereum, based on Wyckoff's methodology. Lee stated that the bigger the base, the bigger the breakout, noting that the previous base catalyzed a 54x gain for ETH.
The anticipation of a Federal Reserve rate cut in September strengthens risk-on sentiment, creating favorable conditions for digital assets. Furthermore, Ethereum's role has strengthened again, with a clear trend of activity moving back from L2s to the Mainnet, especially in DeFi.
In addition, $6.7 billion in stablecoin inflows have occurred in the past week, further boosting Ethereum's network activity. Andrew Melville, an analyst, argues that ETH and altcoins with a DeFi ecosystem are well-positioned to take advantage of the positive regulatory stance in the U.S.
However, the short-term outlook is not entirely certain, as the last three days have seen significant outflows for Ethereum ETFs. Alexander Zahnd, CEO of Zilliqa, stated that Ethereum is the natural go-to blockchain for institutional use because of its maturity, security, and development team.
Recently, Andrew Keys contributed 169,984 ETH, worth approximately $654 million, to Ether Machine, a significant investment that further underscores the growing confidence in Ethereum. On September 2, Ether Machine raised $654 million.
In conclusion, Ethereum's growth is driven by institutional investments, positive netflows, and outperformance of Bitcoin. The short-term outlook is uncertain, but the long-term prospects remain promising.
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