According to Cointelegraph, Ethereum's largest holders, known as mega whales, have significantly increased their Ether (ETH) holdings by 9.31%, marking a stronger accumulation than seen before the 2022 rally. As of July 7, these whales held over 41.06 million ETH, recovering from a record low of 37.56 million ETH in October 2024, based on data from Glassnode. This accumulation rate is nearly double that observed between May and September 2022, when ETH's price surged from approximately $1,000 to over $1,950, a 95% increase. A similar pattern was noted between November 2020 and January 2021, when whale holdings rose by 4%, and ETH's price increased from $460 to $1,220.
The current accumulation by mega whales appears to be happening quietly, as ETH's price action has remained relatively stable in recent weeks. This silent buildup could potentially lead to a significant price increase if historical trends repeat. The rise in mega whale holdings coincides with growing investments in Ethereum-focused funds, including ETFs. This recovery in supply is the strongest and most sustained since the long-term downtrend began in June 2020.
Ethereum is also trading within a bull pennant pattern on the daily chart, a setup that typically indicates a continuation move, often resolved by a breakout in the direction of the prior trend. Despite experiencing both a failed breakout and breakdown within this structure, the pattern suggests strong consolidation. A decisive move above the pennant's upper boundary could propel ETH towards the $3,400 mark by August, with some indicators predicting a potential rise to $5,000 by the end of the year.
Glassnode data highlights the $2,500–$2,536 range as a significant accumulation zone in recent months, with over 3.45 million ETH having their cost basis within this range. This concentration of long-term holders near $2,500 supports the notion that Ether's current consolidation phase is establishing a solid foundation for future gains. Readers are reminded that this article does not offer investment advice, and all trading and investment decisions should be made based on individual research and risk assessment.
Catherine
