BlackRock Buys $100 Million in Ethereum Amid Whale Accumulation

BlackRock, the world’s largest asset manager, has reportedly purchased $100 million worth of Ethereum (ETH) in the past week, signaling a significant institutional investment in the cryptocurrency. This move comes as on-chain data reveals a steady increase in the holdings of wallet addresses with 1,000 to 100,000 ETH, indicating that mid- to large-sized whales have been accumulating ETH since mid-May. This accumulation trend suggests a growing confidence in Ethereum's future prospects among institutional investors.

According to CryptoGoos, the $100 million purchase by BlackRock is a clear indication of aggressive buying by the asset management giant. This development is backed by on-chain data from Santiment, which shows a consistent rise in the number of addresses holding significant amounts of ETH. As of early July, these addresses continue to increase, further reinforcing the bullish sentiment surrounding Ethereum.

In addition to the institutional buying, the current market dynamics present an interesting scenario. Speculators on the Chicago Mercantile Exchange (CME) have built one of the largest short ETH futures positions in history. This extreme bearish positioning has caught the attention of analysts, who are now raising the odds of a possible short squeeze scenario. Quinten Francois points to a surge in Ethereum adoption and inflows via bridged assets and stablecoin usage on Artemis, creating a perfect setup for a forced short-covering rally.

Technically, Ethereum has been trading within a sideways “box range” for weeks, but recent momentum shifts suggest a potential breakout. Mister Crypto notes that ETH recently performed a liquidity sweep below the box range, often a precursor to a breakout in the opposite direction. He believes that a breakout from the upper box border near $2,500 could launch ETH toward $3,500 in the short term. This sentiment is echoed by Ted Pillows, who observes that Ethereum is “flipping $2,500 resistance into support.” Marcus Corvinus takes it further, setting sights beyond $3,500, should the $2,500 mark hold.

Combined with BlackRock’s recent buy and the growth in whale wallets, these chart signals are gaining credibility. The current bullish sentiment has boosted market-wide sentiment, and analysts are eyeing a breakout towards $3,500 in the short term. BlackRock’s involvement in Ethereum is seen as a definitive sign of increasing institutional adoption, reflecting a long-term commitment to integrating digital assets into traditional finance. This move legitimizes crypto investments for a broader institutional audience and signals a strategic pivot towards Ethereum.