Ethereum Whales Accumulate 130,000 ETH as Price Drops 15%

Ethereum is currently experiencing a significant dip-buying trend from major investors, mirroring its 2023-style breakout cycle. On-chain data reveals that top-tier Ethereum wallets have accumulated over 130,000 ETH as the price dropped to $1,781, indicating substantial absorption at a critical demand zone. This activity suggests that smart money is positioning itself for a potential market bottom, similar to the accumulation phases observed in late 2023.

However, the market remains uncertain due to the excessive supply of ETH. The current price action could either signal a genuine breakout or merely the establishment of a bottom at a key support level before the next move. A month ago, Ethereum opened at $2,147, but it has since declined by 15%, breaching the critical $2,000 support level for the first time in two years. In 2023, Ethereum underwent a six-month consolidation phase before initiating a breakout, with two significant accumulation phases in the fourth quarter, ultimately reaching a peak at $4,012.

Some analysts are forecasting a potential repeat rally, drawing parallels to Ethereum’s poor first-quarter performance as a precedent for a bull cycle. Considering both micro and macro factors, this hypothesis seems plausible. The high-risk-off sentiment driven by economic uncertainties could shift market attention away from Bitcoin, potentially positioning Ethereum for upward momentum. Additionally, large inflows at key support levels suggested the onset of an accumulation phase, reinforcing the bullish case for ETH.

Notably, Ethereum’s Percent of Supply Held by Top 1% Addresses has surged to an all-time high, with a substantial 96.66% of the total supply concentrated within the hands of whale-tier holders. This concentration peaked in mid-Q4 last year, coinciding with a marked increase in whale accumulation, which helped fuel ETH’s 71% quarterly rally – outperforming Bitcoin’s 61% during the same period. As whale accumulation resumes with ETH dipping to $1,780 and showing a 2% bounce to $1,830, these historical patterns and accumulation trends strengthen the case for this as a potential market bottom.

However, market conditions have become more volatile compared to two years ago. This is exemplified by the ETH/BTC pair, which has dipped to a five-year low. Bitcoin’s resilience amid market turbulence has exerted downward pressure on Ethereum, contributing to its weak first-quarter performance. Ethereum’s dominance, which held steady in double digits throughout 2023 and into the first quarter of 2025, has now sharply declined to a record low of just 8%. While whale activity played a pivotal role in ETH’s breakout to $4,000 previously, the concurrent peak in the ETH/BTC pair highlights capital rotation as a key factor. Investors, shifting away from Bitcoin’s high-risk/high-reward profile, funneled capital into Ethereum, adding bullish momentum to its rally. However, this dynamic has dramatically shifted. Bitcoin’s dominance has surged to a four-year high, breaking 61%, stifling Ethereum’s relative outperformance. Unless this shift reverses, the likelihood of a repeat rally akin to 2023 remains diminished.