Institutional ETH Holdings Surge 90% Since April Low

Strategic Ethereum Reserve (SER) has seen significant growth, rivaling the corporate treasuries of Bitcoin and Solana. Institutions and even governmental entities have collectively amassed $2.1 billion worth of ETH, equivalent to 789,905 coins. Leading the pack are the Ethereum Foundation, Coinbase, and Golem Foundation. The U.S. government holds 59,965 ETH, while the state of Michigan possesses 4,000 ETH. The Royal government of Bhutan, known for its Bitcoin mining activities, has accumulated 495 ETH.

This institutional interest in ETH mirrors the growing demand for corporate treasuries in the Bitcoin ecosystem, which has historically fueled Bitcoin prices. The question now is whether ETH can achieve similar growth. According to CryptoQuant, the demand for ETH is primarily driven by large players, likely institutions. Since late 2024, large holders with 10,000-100,000 ETH and 1,000-10,000 ETH have increased their holdings. These two whale categories hold 16.7 million ETH and 12.5 million ETH, respectively. In contrast, those with 100-1,000 ETH, likely retail investors, have reduced their holdings from about 14 million ETH to 9 million ETH. This trend indicates that institutions are dominant in the ETH market, and the growing strategic reserve could fuel further accumulation and value appreciation.

ETH has recovered over 90% from its April low of $1,385 and briefly retested $2,700 for the first time since February. Analysts attribute this rally to the successful Pectra upgrade and renewed risk-on sentiment. Currently, ETH is back within the August-November 2024 price range of $2,300-$2,800. Escaping this range and clearing the overhead resistance at $3,000 would confirm further upside movement. Otherwise, a brief cool-off may be likely.

Despite the strong rebound, there is criticism against ETH on social media platforms. Zach Rynes, Chainlink’s community liaison, argues that ETH is in a three-pronged fight and is far from winning. However, other market watchers disagree with Rynes’ opinions, and the ETH market appears strongly positioned for further upside. CoinGlass data reveals that Binance’s top traders have increased their ETH long positions from 63% in early May to 74% over the past four days, indicating that smart money remains bullish on ETH despite its massive recovery.