As Ethereum gained upward traction, the $4,500 price mark constantly proved to be a strong resistance zone for the leading altcoin to break, causing it to turn slightly bearish. Even though the altcoin is experiencing temporary bearishness, the dip appears to have ignited the sentiment of key investors, triggering a sharp wave of accumulation in the last few days.
Mega Ethereum Whales Accumulation Frenzy
Ethereum’s upward action in price may have slowed down, but its biggest players or investors are making bold moves once again with their robust accumulation. Presently, there has been a significant uptick in buying pressure among ETH mega whale wallets, as the number of these addresses increases sharply.
The sharp rise in ETH mega whale wallets reported by Niels, a crypto trader and co-founder of Ted Labs, signals renewed conviction among deep-pocketed investors. Even though the mood of the broader crypto market remains mixed, these key investors are stacking the altcoin at their fastest pace in years.
According to the expert, the current wave of buying spree by the ETH mega whales is similar to that of the 2021 bull market cycle. As seen in the chart shared by Niels, a massive accumulation by these cohorts was followed by a strong upward move in ETH’s price.
With the current buying pressure mimicking that of 2021, the development could prove to be a major driver in Ethereum’s next major price cycle. After examining the chart, Niels highlighted that ETH mega whale wallets, particularly wallet addresses holding at least 10,000 ETH, have risen back to 1,200.
This sizable number of mega ETH whales was last seen at the peak of the bull run. While accumulation by this cohort is still ongoing, the expert is confident that the development is beyond speculative babble.
His bold statement is bolstered by the fact that such buying pressure from these investors often precedes rallies in price. It is worth noting that when whales gather this much, they are planning for the next big step up in price rather than placing bets on short-term moves.
In an X post by Rand, these large investors are now seeing unrealized profits last observed nearly 4 years ago. Data shows that their unrealized profits this year are drawing closer to the $45 billion mark following the recent upswing in ETH’s price.
ETH Available On Crypto Exchanges Is Declining Fast
Just as accumulation is growing strong, the Ethereum balance on crypto exchanges is dropping at a substantial rate. According to the chart shared by CryptoGoos on X, the percentage of ETH balance on crypto exchanges has been steadily declining since August 2020.
Presently, the balance has now fallen below 14%, reflecting a rising trend of investors moving their holdings into staking and self-custody. At the same time, the development reduces the amount of liquid supply that is available for trading.
Featured image from iStock, chart from Tradingview.com
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