Ethereum Whales Are Buying the Dip: What It Means for the Future of ETH
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has been going through some volatility of late, with price fluctuations and a shifting market sentiment affecting its short-term outlook.
Still, Ethereum whales—investors in big amounts of the cryptocurrency—are using this newest opportunity to buy more ETH and, in some cases, large amounts of it. Whalepure activity of late would indeed seem to suggest that the large Ethereum investors are still plenty bullish on the altcoin’s longer-term prospects.
Whale Activity and Large-Scale Purchases Signal Confidence in ETH
Over the last day, alone, Ethereum’s biggest wallets have soaked up an eye-popping 130,000 ETH. Of that, not quite half went to a single new wallet—created, it seems, just so that this purchaser could undertake the massive $20.78 million spending spree for 11,463 ETH that he or she (or they) undertook, at an average price of $1,813 per coin. This was, on the face of it, a very confident move to make in the market, and suggestive of very confident expectations in regards to what the price of Ethereum will be worth in the future.
This wasn’t a one-time occurrence. One more whale generated some waves by snagging 4,100 ETH worth $7.32 million at a $1,785 price tag. Such hefty buys are curious, especially when you consider that the overall price of Ethereum still enjoys quite a bit of distance between it and the ATH (all-time high) that it set last November at slightly under $5,000. All the same, these particular whales seem to believe that the current price is a pretty good entry point; for in addition to this purchase, the same whale (or at least a whale with similar purchasing habits) went on to pick up a total of 33,441 ETH worth a combined $65.5 million at an average price of $1,959.
The behavior of these whales indicates that they have a sustained bullish outlook for Ethereum and are positioning themselves for potentially large future gains. There’s no doubt that some of the current biggest holders of Ethereum—and, by extension, the current biggest holders of ETH—acquired their tokens at prices much lower than where Ethereum is trading today.
Because the actions of these types of players often serve as a reliable indicator of confidence in the long-term price growth of Ethereum (and thus in Q3 2023 and beyond), we consider this a potent reason to maintain a bullish outlook for Ethereum.
Ethereum Network Developments and Lower Fees Encourage Adoption
Besides the movements of major players like whales, the Ethereum network has also been experiencing a great deal of activity recently, with significant improvements being made. These developments lend further support to the argument for a bullish Ethereum in the foreseeable future. One of the most notable developments has been a substantial decrease in total ETH transaction fees, which have now dropped to their lowest levels since 2020. This reduction in fees appears to be a direct result of two things: an increase in the network’s gas limit, and the reception of the Layer 2 scaling solution. Both of these factors appear to be allowing for much greater efficiency in how the Ethereum network operates.
Lower transaction costs make Ethereum more accessible to users and developers and potentially increase adoption across DeFi applications, NFTs, and other blockchain-based services. As more users flock to Ethereum, the demand for ETH could rise, which may positively impact its price in the medium to long term. With the Ethereum network undergoing these improvements, the reduction in transaction costs could be a major catalyst for further growth, especially as the network’s scalability issues continue to be addressed.
Total ETH fees decreased to their lowest level since 2020 this quarter, primarily driven by the gas limit increase and transactions moving to L2s pic.twitter.com/CLmOFfttwa
— IntoTheBlock (@intotheblock) April 4, 2025
These technical updates, complemented by large purchases, show that confidence is growing in Ethereum’s chance to stay a top player in the blockchain world. Meanwhile, as it keeps broadening the kinds of things people can do on its network via the so-called Ethereum 2.0 upgrades, institutions and everyday investors alike are finding its envisioned future to be a pretty compelling reason to hold its underlying asset.
Ethereum ETFs See Continued Outflows Amidst Market Uncertainty
Despite vibrant whale interactions, Ethereum’s exchange-traded funds (ETFs) are seeing a less enthusiastic reception. On April 3, Ethereum spot ETFs saw net outflows of $3.587 million, making it three days in a row of pulling cash out of the product. This suggests that institutional investors might be a bit less confident in the immediate future of Ethereum.
When institutional investors exhibit risk-off sentiment, we can often see it reflected in the outflows from ETFs. The capital that gets pulled out tends to get reallocated to other types of assets. If we’re in a certain kind of market, these ETFs can look like they’re getting sold for whatever reason, because the value is going down, in which case capital is just getting totally reallocated.
On April 3, spot Ethereum ETFs recorded a total net outflow of $3.587 million, marking the third consecutive day of outflows. Spot Bitcoin ETFs saw a total net outflow of $99.8591 million, with BlackRock’s Bitcoin ETF (IBIT) being the only one to register a net inflow.…
— Wu Blockchain (@WuBlockchain) April 4, 2025
Could also indicate that some institutional investors are reallocating to more liquid or lower-risk assets. Particularly in light of the broader crypto market’s fluctuations. Nonetheless, the fact that whales continue to buy Ethereum despite these outflows suggests that large players are undeterred by short-term market sentiment. Instead, large players seem to be focused on the long-term potential of Ethereum.
What’s Next for Ethereum?
The price performance of Ethereum has been recently disappointing, but the rising activity from big investors and some recent technological developments could suggest otherwise. The appallingly low price of the asset seems to be encouraging huge investors to step in and accumulate large amounts of the altcoin. Whales, as they’re sometimes called (not because they’re big or fat, but because they “kill” the narrative a person is trying to build by stepping in with serious money), are now buying lots of ETH.
The outflows from Ethereum ETFs may have some short-term institutional implications, but to us, they are overshadowed by the buying behavior of whales and by the ongoing network improvements that many believe will make Ethereum a far better platform in the future than it is today. Short-term sentiment can change in an instant, but we find it hard to see Ethereum’s long-term value as anything but a very promising bet.
The market is changing, and Ethereum is likely to face new challenges and chances ahead. For now, though, the whales give us a signal that’s as clear as day: Many investors seem to be looking way past short-term price moves and are instead focusing on Ethereum’s long-term growth narrative. We’re not calling for a “next big thing” in the next few weeks. But whatever happens in the market will happen right in front of our eyes, and the larger narrative the market paints will determine if the confidence many seem to have in Ethereum’s growth story really has any substance.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.
