Ethereum has been experiencing a prolonged period of bearish price action. The altcoin has been relatively quiet, with its price declining, leaving many investors and traders feeling uncertain. However, a notable bullish proponent continues behind the scenes, indicating a potential shift in market dynamics.

In the last few days, on-chain data has revealed a significant accumulation pattern for ETH. This bullish catalyst has materialized in the form of whale accumulation, where large investors, commonly called “whales,” have been making substantial purchases of Ethereum. These whales have acquired hundreds of millions of dollars worth of ETH, signaling their anticipation of an imminent price surge.

Ethereum Whales Buy $440 Million Worth Of ETH

This intriguing accumulation pattern was brought to light on social media platform X by renowned crypto analyst Ali Martinez. According to the data shared by Martinez from CryptoQuant, Ethereum whales have recently made a significant move by accumulating 126,000 ETH, valued at approximately $440 million, within a remarkably short span of 48 hours.

The CryptoQuant analysis chart revealed that this buying trend was primarily driven by addresses holding more than 100,000 ETH each, classifying them as ultra-whales. These ultra-whales represent the most influential and substantial investors in the Ethereum market, and their activities often have a pronounced impact on market trends and investor sentiment.

Further analysis of the chart indicates a notable increase in the total balance held by this elite group of traders. On June 28, the cumulative holdings of these ultra-whales stood at around 5.1 million ETH. However, by June 30, this figure had surged to over 5.23 million ETH. This upward trajectory in holdings becomes even more pronounced when we consider the balance from an earlier point, which was 5.05 million ETH on July 22.

Why The Accumulation?

The accumulation can be attributed to whales positioning themselves for a well-anticipated bull run in light of Spot Ethereum ETFs. Investors are beginning to perceive a shift in these spot ETFs, with collective inflows into other Ethereum ETFs starting to outpace outflows from Grayscale’s ETHE.

The launch of these Spot Ethereum ETFs has yet to translate into a price rally for Ethereum. Their launch has kicked off a sell-the-news event. Since launch, ETH has experienced a decline of approximately 12.8% and recently bottomed at $3,090. Despite this downturn, many analysts maintain a bullish sentiment for Ethereum. This shows that investor confidence remains strong, even if this sentiment is largely psychological.

At the time of writing, Ethereum is trading at $3,150. On-chain buying trend shows that many whales are preparing for an altcoin rally that’s set to be spearheaded by Ethereum. On-chain data from CryptoQuant reveals that limit buy order volumes for altcoins are increasing across various exchanges. This has caused the creation of huge buy walls, which in turn reflect preparations for an altcoin rally.