Ethereum Whales Engage in Historic Buying Spree Amidst Market Retracement

A significant divergence is emerging in the Ethereum market, creating a complex but potentially lucrative landscape for traders. While Ether's price has seen considerable pressure, recently trading around $2,440 on the ETH/USDT pair, a powerful trend of accumulation by large holders is providing a formidable undercurrent of support. According to on-chain analytics from Santiment, wallets holding between 1,000 and 100,000 ETH, often categorized as "sharks" and "whales," have dramatically increased their positions. Over the last 30 days, these influential entities have added a staggering 1.49 million ETH to their balances. This accumulation represents a 3.72% increase in their collective holdings, bringing their total control to 26.98% of the entire circulating supply of Ether. This behavior starkly contrasts with that of smaller, retail-oriented wallets, which have been observed taking profits, suggesting a transfer of assets from short-term traders to entities with a longer-term conviction.

Further reinforcing this narrative of conviction among large players, data from Glassnode reveals that the scale of this whale buying is historic. Daily net accumulation by these large wallets has surpassed 800,000 ETH for nearly a full week. One particular day, June 12, saw a massive single-day net inflow of over 871,000 ETH into whale wallets, marking the largest such accumulation event of the year. Analysts at Glassnode have noted that this pattern of sustained, aggressive buying from large holders has not been witnessed with such intensity since the bull market of 2017. This historical parallel underscores the significance of the current trend. Whales are not merely buying the dip; they are accumulating at a record-setting pace, treating the recent price weakness below the $2,700 level as a strategic entry point. This activity is building a substantial demand floor, which could absorb selling pressure and potentially trigger a sharp price reversal if market sentiment shifts.

Navigating Conflicting Institutional Signals and Price Action

However, the bullish on-chain picture is complicated by signals from the traditional finance sector. The recently launched U.S.-listed spot Ethereum ETFs, which had been a major source of demand, experienced their first signs of cooling momentum. According to data tracked by Farside Investors, these ETFs recorded a net outflow of $2.2 million on Friday, which, while modest, was significant for breaking a 19-day consecutive streak of net inflows. This reversal indicates a potential short-term pause in new institutional capital flowing into ETH through these regulated products. This creates a fascinating dynamic for traders: on-chain whales with direct custody are buying aggressively, while ETF investors, who may be more sensitive to short-term price momentum, are beginning to pull back. This divergence highlights a potential disconnect between long-term holders and momentum-driven institutional funds.

From a technical standpoint, Ethereum's price action is at a critical juncture. After being sharply rejected from resistance near $2,670-$2,700, ETH has found itself battling to hold a key support zone between $2,375 and $2,500. The 24-hour range for the ETH/USDT pair between $2,374.58 and $2,465.69 illustrates this tight consolidation. A sustained break below this support could open the door for a deeper correction. Conversely, the immense whale accumulation provides a strong argument for this zone holding firm. The ETH/BTC pair, trading around 0.0229, also tells a story of recent underperformance against Bitcoin, but a reversal could see ETH outperform significantly. Traders should closely monitor the $2,500 psychological level. A decisive reclaim of this level, supported by high volume, could be an early signal that the whale-driven demand is beginning to overwhelm the selling pressure, potentially setting the stage for a move back towards the $2,700 resistance.