Whales and Institutions Accumulate Ethereum Amidst Price Decline

Ethereum's recent price decline has sparked significant interest from large investors, known as "whales," who are accumulating the cryptocurrency at what they perceive as favorable entry points. This increased activity, coupled with institutional inflows, suggests a potential price recovery for Ethereum (ETH) as it tests key demand zones in a volatile market.

Data from IntoTheBlock reveals that whales have been actively buying Ethereum since February 4th, with large holder netflows surging from -109,160 ETH to 174,000 ETH within just four days. This notable shift in netflows underscores the significant confidence whales have in Ethereum's long-term prospects. Additionally, Ethereum's whale concentration has increased from 37% to 43% over the past year, indicating that these large investors are starting to wield more influence over price movements.

Institutional investors are also accumulating Ethereum following weekly inflows to Spot Ethereum exchange-traded funds (ETFs) reaching a 2025 high. According to SoSoValue data, the weekly inflows to Spot Ethereum ETFs have surged to $420M, marking the fifth-highest level for Ethereum ETFs since their inception in July 2024. This significant influx of capital from institutional investors suggests a continued bullish sentiment around Ethereum, with many viewing the recent dip as an opportunity rather than a detriment.

The In Out of the Money Around Price (IOMAP) metric highlights a key demand zone below Ethereum's current price, specifically between $2,383 and $2,459, where 2.21M addresses purchased ETH. Given the high profitability of addresses that bought ETH at this zone, it could act as an ideal entry point for buyers looking to enhance their positions, while also serving as a support level. If ETH drops to retest this demand zone and confirms buyer strength, it could trigger a price recovery.

However, despite the rising interest from whales and institutions, network activity on the Ethereum mainnet has continued to decline. Ethereum's gas fees recently hit a 2025 low, hinting at reduced network usage which could pose concerns for ETH's future price performance. Traders should remain cautious given the waning network activity, and it's a critical time for Ethereum holders