Whales aggressively accumulate ETH as Ethereum staking increases

Ethereum has been making waves as its price hovers above the $2,500 mark, driven by a surge in staking activity and significant accumulation by whales in the market. The bullish sentiment surrounding Ethereum is palpable, with the total amount of staked ETH reaching a new high of 35 million coins.

Whales, or large holders of Ethereum, have been aggressively accumulating the cryptocurrency, pushing its price to remain steady above the $2,500 level. Despite a minor 2% dip in the past 24 hours and a 7% drop over the week, Ethereum has managed to hold its ground. The top altcoin’s resilience can be attributed to the substantial buying pressure exerted by these influential market players.

Both Glassnode and CryptoQuant analysts have pointed out that the recent behavior of whales, coupled with the surge in ETH staking, could serve as a significant catalyst for Ethereum’s price appreciation. The accumulation of ETH by these large holders has reached levels not seen since 2017, indicating a strategic move to position themselves ahead of a potential market breakout.

Data from Glassnode reveals an intriguing trend, with Ethereum whales accumulating over 800,000 ETH daily for the past week, culminating in a massive influx of 871,000 ETH on June 12. This surge in whale activity has pushed their collective control over the total ETH supply to 27%, a level historically associated with major market upswings. The strategic buying spree by whales mirrors similar behavior observed in 2017, a period preceding a significant bull run for the cryptocurrency.

Market analysts attribute this heightened whale activity to increasing institutional demand, boosted by ETF filings and the introduction of new derivatives and liquidity tools. Despite certain technical indicators hinting at potential weakness, the overall technical outlook favors buyers, indicating a positive trajectory for Ethereum in the near term.

In parallel to the surge in whale accumulation, Ethereum staking has reached unprecedented levels, driven by holders looking to earn passive income from their assets. According to CryptoQuant, ETH staking hit an all-time high on June 17, with over 35 million coins locked in various staking protocols. Additionally, Accumulation Addresses, representing holders with no history of selling their holdings, now collectively hold 22.8 million ETH, marking another all-time high.

Staking allows ETH holders to lock their coins and earn rewards by participating in the network’s consensus mechanism, thereby reducing the circulating supply of Ether in the market. This reduction in available tokens has effectively helped Ether maintain its price levels in the face of market fluctuations, showcasing the strong support for Ethereum within the community.