On-chain data reveals that significant Ethereum investors have been increasing their holdings recently, potentially indicating a bullish trend for the ETH price.
Ethereum Large Holders Netflow Has Turned Positive Recently
In a recent post on X, the market intelligence platform IntoTheBlock analyzed the shift in the Large Holders Netflow for Ethereum. This metric tracks the net amount of Ethereum moving into or out of wallets controlled by what the analytics firm categorizes as Large Holders.
IntoTheBlock classifies investors into three categories: Retail, Investors, and Whales. Retail holders possess less than 0.1% of the circulating supply, Investors hold between 0.1% and 1%, and Whales encompass those with over 1% of ETH.
Currently, at today’s exchange rate, the threshold of 0.1% of ETH supply amounts to over $214 million, indicating that even the Investor group commands substantial capital, while Whales represent an even larger tier.
The Large Holders, which are the primary focus of our discussion, comprise both Investors and Whales. Thus, the Large Holders Netflow reflects the transactions involving these significant market players.
A positive value in this metric indicates that large investors are experiencing a net inflow of ETH into their wallets, suggesting accumulation. Conversely, a value below zero implies that these key players are engaging in net selling.
The graph shared by IntoTheBlock illustrates the trend of the Ethereum Large Holders Netflow over the past week:
The chart displays that the Ethereum Large Holders Netflow has predominantly remained in positive territory, implying cumulative action by Investors and Whales. Notably, on the second of the month alone, these entities added a net amount of 130,000 ETH (approximately $230 million) to their portfolios.
The influx of ETH for Large Holders occurred against a backdrop of declining cryptocurrency prices, suggesting that these investors may perceive current prices as a favorable entry point for accumulation. Moving forward, it will be critical to monitor whether this buying activity can stabilize ETH and establish a bottom.
In related news, Ethereum transaction fees have fallen to their lowest level since 2020 this quarter, as highlighted in another post by IntoTheBlock.
After a significant drop of 59.6%, the total transaction fees for Ethereum have decreased to $208 million. IntoTheBlock attributes this decline to “primarily driven by the gas limit increase and transactions moving to Layer 2 networks.”
ETH Price
Ethereum briefly climbed above $1,900 earlier in the week; however, the bullish momentum appears to have waned, resulting in a retreat back to around $1,770.
