Major investors appear to be making moves ahead of the curve, as Ethereum’s on-chain activity continues to bolster its long-term value. The indicators might not be immediately apparent, but they are beginning to accumulate. Since December 26th, there has been a consistent uptick in the balances of wallets holding significant amounts of ETH. According to data, the supply held by whales has increased from approximately 100.48 million ETH to around 100.8 million ETH, marking an addition of nearly 300,000 ETH. With prices hovering around $2,940, this indicates more than $850 million has been funneled into large wallets within a matter of days. Whales are strategically positioning themselves as buying occurs, despite the price action remaining relatively flat. They generally accumulate exposure during periods of low volatility, maintaining confidence in Ethereum’s long-term potential rather than being deterred by its short-term declines.
Ethereum’s economy carries the weight. The underlying economy is on a growth trajectory, and that’s exactly what we ought to be witnessing. As of the latest update, Token Terminal data indicated that Ethereum’s Total Value Locked stood at $330.7 billion, with its Fully Diluted Market Cap hovering around $353.2 billion, resulting in a valuation multiple close to 1.1x. In straightforward terms, the price of ETH is closely aligned with the scale of the economy that has developed around it. This relationship has, to date, served as a valuation anchor. The expansion of DeFi, stablecoins, and RWAs on Ethereum is driving increased demand for ETH.
Ethereum’s daily chart indicated that the price was having difficulty regaining momentum after falling below crucial moving averages. ETH was trading around $2,940, remaining constrained below the 50, 100, and 200-day EMAs, which served as overhead resistance in the range of $3,100–$3,380. Momentum indicators reveal that traders are displaying some hesitation. The RSI indicated a lack of strong bullish momentum, whereas the MACD signaled that the upward pressure is diminishing. Sellers have yet to trigger a breakdown, while buyers are also showing signs of uncertainty. Currently, ETH finds itself in a phase of consolidation. A significant shift is probable only if there is a resurgence in volume and acceleration.
Whales have accumulated over $850 million in ETH, all while the price remains stagnant, indicating that they are gearing up for a significant shift in the market. With Ethereum’s on-chain economy exceeding $330 billion, the downside pressure appears to be constrained as long as it remains stable.