Ethereum's whales are stockpiling Ether as sellers dissipate, hinting at a potential rise to $4,000 in value.
In the cryptocurrency market, July 2025 has seen a surge in Ethereum (ETH) whale activity, leading to a potential supply squeeze and driving up the price of the second-largest digital asset.
Key points of analysis reveal significant whale purchases and wallet growth. On July 21, a prominent $49.56 million purchase of ETH by whales was recorded, accompanied by a rise in large transactions surpassing $100 billion in volume, the highest since 2021. Furthermore, the number of Ethereum wallets holding more than 10,000 ETH increased by 4% in the past week, adding 45 new such wallets.
This accumulation by large holders has correlated with a rally in Ethereum's price, which surged from around $2,100 in June to approximately $3,600 by July 22. The accumulation has been further bolstered by growing Ethereum spot ETF inflows, with over 588,000 ETH inflows into such ETFs, nearly 17 times the historical average.
Large transactions volume, meaning Ethereum transfers exceeding $100,000, reached over $100 billion last week, signaling intense activity from whales and big financial institutions. While this metric does not distinguish between buying or selling actions, it does highlight their influence on market liquidity and potential price shifts.
However, the bullish sentiment is not without risks. Despite the overall accumulation, there have been large sell-offs in July, including a $374 million ETH sell-off and a 40,000 ETH dump on Kraken exchange, reflecting short-term liquidity risks and market volatility.
The growing trend of accumulation addresses—wallets that receive ETH but do not move it out—is rising, further reflecting Ethereum becoming more locked up by whales and institutions. This tightening supply availability can contribute to upward price pressure, a typical supply squeeze scenario.
As a result, the reduction in available Ethereum could trigger a supply squeeze, potentially fueling further price increases. Depositing addresses for Ethereum have dropped sharply, reaching a low last seen on the 7th of July, with exchange reserves of Ethereum also declining significantly. The number of depositing addresses for Ethereum has fallen to 16,000, and exchange reserves are at 19.7 million ETH.
Notable whale activity includes a whale named Aguila Trade closing a short position on Ethereum and opening a new long position worth over $128 million. Another whale withdrew 13,244 ETH (worth $49.52 million) from the crypto exchange OKX and moved the funds into private wallets.
Investors have also shown a long-term bullish outlook, accumulating over $70 million worth of Ethereum and moving it into private wallets. Such transfers usually signal a long-term bullish outlook, as investors show intent to hold rather than sell in the short term. Additionally, investors are placing buy orders on Ethereum in anticipation of a potential rally, and whales are opening large long positions on Ethereum.
In summary, the increase in Ethereum whale activity in July 2025 is characterized by large, coordinated purchases and a growing number of sizeable ETH holders. This, combined with massive inflows to Ethereum spot ETFs and accumulation addresses, suggests a tightening supply and bullish sentiment from institutional and high-net-worth investors. However, accompanying sell-offs and market volatility highlight ongoing risks that investors should consider when interpreting this whale-driven supply squeeze and price rally.
- The skyrocketing price of Ethereum (ETH) has been influenced by a significant increase in whale activity and wallet growth, as demonstrated by a prominent $49.56 million purchase on July 21st.
- The accumulation of Ethereum by large holders has led to a rally in its price, soaring from around $2,100 in June to approximately $3,600 by July 22nd.
- A notable occurrence in the crypto market has been the rise in large transactions volume (ETH transfers exceeding $100,000), reaching over $100 billion last week, indicating intense activity from whales and financial institutions.
- Despite the overall accumulation of Ethereum, there have been large sell-offs in July, including a $374 million ETH sell-off and a 40,000 ETH dump on Kraken exchange, reflecting short-term liquidity risks and market volatility.
- Investors are displaying a long-term bullish outlook by accumulating over $70 million worth of Ethereum and moving it into private wallets, a typical action signaling a long-term intent to hold rather than sell in the short term.
