Ethereum is seeing renewed bullish momentum as large holders ramp up accumulation amid a broader market correction. On-chain analytics firm Santiment reports that whales holding 1,000–100,000 ETH increased positions by 14% over the past five months, a move that coincides with rising institutional interest.
The timing has been notable: year-to-date ETH returned 132% versus BTC’s 34%, and Ether was trading near $4,422, up 0.9% in the prior 24 hours per CoinGecko. That outperformance appears to be prompting portfolio rebalances from Bitcoin into Ethereum among some large holders and funds.
Multiple on-chain metrics underline the shift. Artemis recorded about $9.9 billion in netflows to the Ethereum chain over three months, while Token Terminal showed roughly $6.7 billion in stablecoin inflows in the last week. Corporate and project treasuries have been active as well: Ether Machine raised $654 million on September 2 following earlier funding rounds and a large founder contribution.
Analysts point to several drivers: ETF interest, renewed DeFi activity on the mainnet, and a growing institutional appetite for Ethereum’s ecosystem. Bitget chief analyst Ryan Lee told Decrypt that rebalancing into ETH and optimism around ETFs are helping momentum. Industry figures also argue that Ethereum’s maturity, security, and developer base make it attractive for institutional use.
ETF flows are a major part of the story: ETH-focused exchange-traded funds logged approximately $3.87 billion in inflows in August and about $1.08 billion the following week — figures that outpaced Bitcoin ETF flows in the same windows. However, the most recent three days saw notable outflows from ETH ETFs, reminding investors that short-term liquidity can swing quickly on macro headlines.
Longer-term technical views add to the bullish case: some strategists point to a multi-year consolidation base that could precede a significant breakout. At the same time, risks remain real — macroeconomic events, central bank decisions, and sudden ETF withdrawals can reverse gains quickly, and on-chain accumulation does not guarantee future price appreciation.
Why it matters: rising whale accumulation and institutional flows may amplify ETH price action and network activity, but investors should balance potential upside with macro and liquidity risks.
Source: Decrypt. Read the original coverage for full details.