Ethereum Demand Heats Up: Institutional Investors Lead Aggressive ETH Buying
Ethereum (ETH) is witnessing a robust surge in institutional accumulation, with funds and whales increasing their exposure despite already high price levels. On-chain trackers indicate significant inflows into wallets linked to institutional investors and newly created addresses, signaling renewed confidence in Ethereum’s long-term potential.
Whales Make Strategic Moves
Recent activity shows aggressive positioning by major players. Trend Research, which sold 79,470 ETH (around $250 million) two months ago at an average price of $3,145, repurchased Ethereum at higher levels this week, reflecting strong faith in the cryptocurrency’s prospects despite short-term cost inefficiencies. Within just two hours, Trend Research withdrew 9,377 ETH ($41.37 million) and borrowed 88 million USDT from Aave, depositing it to Binance.
In other notable moves, SharpLink sent 379 million USDC to Galaxy Digital, likely for Ethereum purchases. Four newly created wallets extracted 78,229 ETH ($342 million) from Kraken within 10 hours, signaling accumulation rather than liquidation. Additionally, Bitmine purchased 46,255 ETH ($200.43 million), bringing its total holdings to over 2.1 million ETH worth $9.27 billion.
ETH’s Market Prospects
From a technical perspective, Ethereum shows strong support at the 50-day moving average, with key support zones around $4,200 holding steady. The RSI indicates room for growth without overextension, while institutional inflows continue to offset retail uncertainty amid lower trading volumes.
The ongoing purchases reflect Ethereum’s pivotal role in the broader digital asset ecosystem, reinforced by factors such as ETF approvals, growing popularity of scaling solutions, and its position as a core infrastructural asset. These institutional moves suggest confidence in Ethereum’s potential to reach higher price points, potentially targeting $5,000 in the future.
While short-term volatility remains inevitable, Ethereum’s underlying demand profile is strengthening, highlighting why major investors continue to accumulate ETH at this stage.
