Ethereum Whales Accumulate 64 Million Tokens as Price Holds at $2,500

Ethereum's price has been in a consolidation phase, trading around $2,500 since May. This period of stagnation has been marked by a narrow trading range, with the digital asset struggling to break above the $3,000 mark. Despite this, there are signs of accumulation that could potentially lead to a bullish breakout.

Third-party data indicates that whales and institutional investors have been increasing their Ethereum positions in recent months. Spot ETH ETFs have seen inflows for eight consecutive weeks, with over $219 million in assets added this week alone. This trend suggests that these investors anticipate a rebound in Ethereum's price. Additionally, addresses holding between 10 million and 100 million tokens have increased their positions to 64 million tokens, while the supply held by top addresses has reached a high of 75.6 million.

The shift in investor sentiment is further evidenced by the decrease in Ethereum balances on exchanges. There are now 7.3 million ETH tokens on exchanges, down from 10.73 million in February. This decrease signals that investors are moving their coins to self-custody, indicating a shift from short-term trading to long-term holding. Moreover, the number of investors staking their ETH coins has increased, with a net increase of 2 million coins in staking pools. This has pushed the staking ratio to 29.45% and the staking market cap to nearly $90 billion.

Technical analysis of Ethereum's price chart shows that it has remained in a tight range since May. The accumulation and distribution indicator has been rising and is hovering near its highest level this year. Ethereum has formed a bullish flag pattern, which often leads to a strong bullish breakout. If Ethereum rises above last year’s high of $4,100, gains to the target price of $4,287 will be confirmed. However, the bullish forecast will become invalid if Ethereum drops below the psychological point at $2,000.

The ongoing accumulation of Ethereum by large holders and the increase in the number of wallets holding significant amounts of the digital asset suggest that market movers are confident in its future price movement. This accumulation, coupled with the decrease in exchange balances and the increase in staking, signals a shift towards long-term holding and yield generation. It reflects increased trust in Ethereum’s ecosystem, rising decentralization, and a maturing investor base. Despite technical headwinds, Ethereum's slight increase in price today further supports a potential bullish movement in the market.