Ethereum Whales Accumulate $2.9 Billion Worth of ETH. Is a Rally to $5k Next?

Key Insights

• Ethereum whales accumulate $2.9 billion in ETH.

• Institutional demand soars as Sharplink acquires 11259 ETH, rising total holdings to 449.276 ETH tokens worth $1.73 billion.

Since April, Ethereum has surged from $1.4k to $3.9k, marking a 175% increase over the last 3 months. Over this period, Ethereum has experienced massive accumulation from whales and institutions.

Ethereum Whales Accumulate $2.9 billion in ETH.

Throughout July, Ethereum whales have been aggressively accumulating the altcoin. Today, the same pattern has continued. According to On-chain Lens, the whale or institution bought 20,000 ETH worth $74.13 million from Wintermute OTC and later staked it with Lido. Following the acquisition, the whale now holds 40,005.8 ETH, worth $147.54 million in staking with Lido.

Source: Lookonchain

At the same time, new wallets have continued to accumulate. According to On-chain lens, a fresh wallet further received 23,314 ETH, worth $88.27 million, from GalaxyDigital. It now holds a total of 62,966 ETH, worth $232.75 million. Another wallet received 44,983 ETH, worth $166 million, from FalconX.

Since July 9, a total of 12 fresh wallets have accumulated 790,449 ETH worth $2.92 billion. Thus, Ethereum whales accumulate $2.9 billion in ETH. Such a massive accumulating trend signals increased demand for Ethereum among whales and institutions. Based on historical cycles, increased accumulation by large holders results in higher prices as demand tends to push prices higher. 

Institutional demand for Ethereum is at an all-time high.

Besides the Ethereum whale, Ethereum whales accumulate $2.9 billion in ETH. Institutions are buying the altcoin in a way not seen before in recent years. For example, Sharplink has turned into the MicroStrategy of Ethereum. This institution has accumulated ETH continuously over the last month.

Source: Lookonchain

Today, Sharplink bought 11,259 ETH tokens for $43.09 million, increasing its holdings to 449.276 ETH tokens worth $1.73 billion. In addition to Sharplink, other institutions such as Ether Machine and Bitmine are aggressively accumulating the altcoin. This demand for ETH correlates with Bitcoin's demand, which pushed the king crypto to an ATH of $123k.

Now, BTC is growing strongly without retail demand, and if Ethereum sees the same demand from institutions, ETH could sustain the rally.

Looking further, we can see the growing demand for Ethereum among institutions through Options Volume and Options Open Interest. Options volume is currently at $1.3 billion, up 27% while Options Volume sits around $10.4 billion.

Ethereum Spot ETFs, too, are not left behind.

Besides increased institutional accumulation as a strategy, ETH is also recording significant demand through ETFs. Since June 26, Ethereum spot ETFs have recorded positive net inflows.

Source: Coinglass

As of July 31, net inflows were 4.46k ETH. A positive netflow for than a month suggests that institutions are aggressively buying the altcoin through ETFs. BlackRock leads the race with $11.2 billion in assets under management. As earlier reported by EMCryptohub, Blackrock holds over $5 billion worth of ETH.

Can Whale/ Institutional Demand Boost ETH to Hit $5k?

As observed above, the current Ethereum rally is driven mainly by aggressive accumulation from whales and institutions.

For the first time in Ethereum's history, there are institutions aggressively buying and holding Ethereum as an investment strategy. With a pro-crypto government in the United States, institutions are now confident about ETH prospects.

In this case, if whales and institutions continue accumulating, ETH will sustain the rally and make more gains.

As of this writing, Ethereum is testing a significant resistance at $4k; if bulls hold on, they will reclaim $4k and flip it into support. A move above here will set eyes towards $4.8k, which is the previous ATH. If that happens, the altcoin will comfortably hit $5k for the first time. However, if whales and institutions fail to hold the market, a correction is very likely, and a drop to $3.5k will follow.