Ethereum (ETH) whales are aggressively accumulating tokens, signaling confidence in a potential price recovery. However, key on-chain metrics suggest this optimism may be premature, raising questions about ETH’s short-term upside.
Major Institutions Accumulate Millions in ETH
Whales have made multi-million-dollar acquisitions in recent hours. Notably, SharpLink Gaming acquired 1,989 ETH worth $4.82 million via an OTC deal, increasing its total ETH holdings to nearly 190,467 ETH. Another wallet, 0x1fc7, added 1,888 ETH (worth $4.56M) and immediately staked it into Ethereum’s Beacon Chain.
These high-volume purchases underline long-term institutional confidence in Ethereum’s future.
Despite this, ETH’s price remains stagnant near $2,428, suggesting that market sentiment isn’t fully aligned with whale behavior.
Weak Network Growth Raises Red Flags
Ethereum’s Network Growth recently spiked above 250,000 new addresses—only to plunge back to 24,800, according to Santiment. This kind of volatility may indicate speculative or bot-driven activity, not true user adoption.
Without consistent network expansion, price momentum becomes difficult to sustain.
A sharp drop in new wallet creation often reflects a lack of genuine user demand, further weakening the bullish thesis.
MVRV Z-Score Turns Negative: A Bottom Signal?
Ethereum’s MVRV Z-score dropped to -0.18, showing that many investors are holding at a loss. Historically, such readings signal potential accumulation zones, where long-term buyers step in.
Negative MVRV may reduce selling pressure, but follow-through from other indicators is needed before confirming a recovery.
Ethereum’s NVT Ratio Spikes to Multi-Month High
The NVT Ratio—which compares network value to transaction volume—soared to 2044, highlighting a disconnect between Ethereum’s valuation and on-chain activity.
A high NVT often signals overvaluation and hints at possible corrections or consolidation.
Unless transaction volumes rise significantly, even large-scale whale buying may not translate into lasting bullish momentum.
Accumulation Without Activity Is Not Enough
While Ethereum whale accumulation is impressive, it is happening in contrast to weakening network growth, bearish MVRV readings, and a sharp spike in NVT.
Until on-chain activity aligns with investment flows, ETH’s upside potential may remain limited.
Investors should monitor upcoming developments closely, as Ethereum may be entering a critical decision zone for the next price trend.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.