Recent on-chain data suggests that large investors are quietly building strong positions in Ethereum.
Over the past two weeks, a major whale, apparently linked to ShapeShift founder Erik Voorhees, deployed nearly $260 million in USDT to accumulate over 120,000 ETH.
This buying pattern indicates a regular accumulation strategy rather than a one-time transaction. For example, in the last transaction, the whale spent $4.29 million to purchase ETH at a price of $2,134.
Overall, the average purchase price stands at around $2,162, which is now a key support level for the market.
Such moves demonstrate strong confidence that Ethereum could be nearing its all-time low, with expectations of potential upside in the coming months.
Notably, this accumulation is occurring even as ETH trades at $2,071.67, down more than 3% in the past 24 hours. This shows a clear divergence between short-term price action and long-term investor sentiment.
Behavior of retailers and whales
To understand this better, let’s analyze CryptoQuant’s Spot Retail business.
Historically, small investors tend to buy when prices are already high, driven by FOMO. This has happened in past cycles like 2018, 2021 and even 2024.
Right now, retail activity is relatively low, which is actually a good sign. This means that the market is in a calmer phase, where large investors are accumulating, while the public stays away.
Interestingly, while this whale has been aggressively buying Ethereum (ETH), ETFs have seen money flowing out, which may seem negative at first.
However, a closer look reveals that large whales are steadily increasing their holdings, while mid-sized investors appear to be selling or redistributing.
Meanwhile, retail investors remain inconsistent, often buying at higher levels and selling on dips.
Overall, this indicates that Ethereum is gradually moving from weaker hands to stronger, long-term holders, which is generally a bullish sign for the market.
The past movement of Voorhees whales and a crazy twist
For those who don’t know, this whale activity began on March 16 and intensified on March 20, when the Voorhees-related whale made another major move.
However, the narrative took a drastic turn when Voorhees publicly denied any involvement and stated:
I didn’t buy any eth and these tracking sites are a scam.
Now this throws darts at two opposing possibilities. In the first case, it could be a different investor with similar portfolio activity, or simply a misidentification by tracking platforms.
However, another possibility is stealth accumulation, where large investors buy quietly to avoid moving the market.
Whatever the possibilities, such whale movements impact how investors perceive and feel about the future of the token.
Final summary
- Low prices are used as an opportunity by big players, not as a warning sign.
- ETF outflows may seem bearish, but on-chain data shows that whales are steadily increasing their holdings.
