XRP News Today: Ethereum Whales Accumulate 22,200 BTC Amid Fed Uncertainty, Dormancy Hits 3.5-Year Low

Ethereum’s June price action revealed a clear divergence between market movement and investor behavior. Data from CryptoQuant shows a consistent increase in Ethereum accumulation throughout June. While ETH prices moved sideways or slightly declined, accumulation addresses, shown by rising blue bars, saw growing volumes. This trend intensified late in the month, even as prices remained stable. CryptoQuant analysts interpret this as a sign of conviction among experienced holders. Historically, long-term investors increase their positions during price consolidation, often ahead of market recoveries.

Glassnode reported that Ethereum’s Dormancy Flow has reached its lowest level in years. Dormancy Flow tracks the average age of coins being moved, with lower values indicating fewer long-held coins entering circulation. This typically signals low selling pressure and increased holding behavior. According to analysts, this trend reflects long-term investor confidence. With fewer coins moving, selling activity has slowed, suggesting that investors are waiting for higher prices. Past cycles show similar dormancy patterns during accumulation phases, often leading into bullish reversals.

Federal Reserve Chair Jerome Powell will speak on July 1 at a key global monetary forum. His appearance comes amid renewed criticism from Donald Trump, who attacked Powell’s interest rate policy during a June 29 interview. Trump argued that rates should fall to 1–2%, calling the current 4.25% to 4.5% range “artificially high.” He also labeled Powell “a stupid person” and vowed to oppose any nominee unwilling to cut rates. Treasury Secretary Scott Bessent suggested a new nomination could come by October, despite Powell’s term running through May. The escalating political pressure adds uncertainty to future rate decisions. Any shift in Fed policy could directly impact crypto markets, including Ethereum, as investors respond to changes in liquidity and risk sentiment.

Ethereum whales have been actively accumulating the cryptocurrency as dormancy levels hit new lows, coinciding with heightened tensions surrounding the Federal Reserve's monetary policies. This behavior suggests that large investors are taking advantage of the market's volatility to increase their holdings, while retail investors appear to be more cautious. The recent market turbulence, driven by geopolitical tensions and investor fear, has provided a clear example of how sentiment swings and whale behavior influence crypto price movements. Analysts have noted that periods of fear often present ideal entry points for seasoned investors, as retail traders tend to sell in panic. This dynamic was evident in late June, when wallets holding between 10 and 10,000 BTC added 22,200 BTC in just 18 days. This accumulation indicates growing confidence among large investors, as wallets holding at least 10 BTC reached a 3.5-month high.

The sentiment data from Santiment hit monthly lows just before the rebound, reflecting the classic "maximum fear equals maximum opportunity" behavior. This divergence between price and sentiment can foreshadow bullish momentum, as seen in the case of XRP, where sentiment rose despite a legal setback. The XRP community's positive response to the news signaled potential hidden optimism, even as the price faced uncertainty. Ethereum, however, has lagged during the recovery, with futures funding rates turning negative. This indicates an influx of short positions, which often precedes a short squeeze—a scenario where rising prices force short traders to buy back in, further accelerating gains. This bearish crowding suggests that Ethereum may be poised for a rebound, as large investors continue to accumulate the cryptocurrency.

The accumulation of Ethereum by whales, coupled with the low dormancy levels, highlights the strategic behavior of large investors. As retail investors retreat, whales are seizing the opportunity to buy the dip, positioning themselves for potential gains. This behavior underscores the importance of tracking on-chain data and sentiment metrics, as they provide valuable insights into market dynamics and potential price movements. Investors who monitor these indicators can position themselves ahead of the curve, navigating volatility with confidence and clarity.