Ethereum News Today: Ethereum's Bullish On-Chain Surge Clashes with Diving Price as Whales and ETFs Act

Ethereum's largest holders continue to shape market dynamics as an early investor cashed out $60 million in Ethereum Wednesday, marking a 9,500-fold return since the 2014 initial coin offering (ICO). The sale, executed by wallet "0x2Eb," reduced the holder's remaining ETH holdings to $9.3 million, according to Nansen data. Despite the profit-taking, the top 1% of ETH holders have steadily increased their share of the total supply to 97.6%, up from 96.1% a year ago, reflecting continued institutional confidence.

The whale's activity has sparked mixed reactions. While some on social media platforms like X view the sale as a potential bearish signal, analysts note the gradual nature of the offloading, which began in September, suggests a measured strategy rather than panic selling. Meanwhile, Ethereum spot ETFs have turned a corner, recording $60 million in net inflows on Wednesday-the fourth consecutive day of positive flows, reversing an eight-day outflow streak. BlackRock's ETHA led the inflows with $50.39 million, while Fidelity's FETH attracted $95.40 million, signaling renewed institutional interest.

Whale accumulation remains a key driver of Ethereum's structural strength. Wallets holding 10,000 to 100,000 ETH have amassed a combined 21 million ETH, a record high since the network's launch. Larger holders with over 100,000 ETH have also expanded their positions to 4.3 million ETH, indicating growing conviction among institutional investors. This trend aligns with broader market behavior, including a decline in exchange-held ETH reserves on Binance, which have dropped to 3.764 million as of November.

Market optimism is further fueled by Ethereum's technical developments. Validators recently pushed the network's gas limit to 60 million, the highest in four years, ahead of the Fusaka upgrade. This adjustment, which enhances transaction throughput, has been described as a "major scaling milestone" by analysts, with some suggesting a potential 5x gas limit increase by 2026. However, ETH prices remain below $2,800, down 28.9% from a month ago, highlighting the gap between bullish on-chain activity and price action.

The interplay between whale behavior and ETF flows underscores Ethereum's evolving market structure. While the top 1% continue to consolidate holdings, ETF inflows and rising derivatives activity suggest selective exposure-building rather than aggressive rotation. For now, the market remains in a "measured" phase, with analysts like Iliya Kalchev of Nexo noting that investors are prioritizing "rebuilding exposure" over short-term speculation.