Whale ETH accumulates millions of dollars: A sign of bullish or trap?

The accumulation activity of Ethereum (ETH) by whales continues to increase, despite weakening on-chain signals. Major institutions are still aggressively acquiring millions of dollars in ETH, showing long-term confidence even though the current market sentiment remains cautious.

Recently, SharpLink Gaming executed a large-scale OTC transaction, purchasing an additional 1,989 ETH worth approximately 4.82 million dollars in just 5 hours. With this move, the total amount held by the organization has increased to 190,467 ETH, equivalent to nearly 478 million dollars – including the previous purchase of 188,478 ETH.

Source: LookonchainMeanwhile, whale 0x1fc7 (address staked 3.201 ETH a week ago) has returned with a purchase transaction of 1.888 ETH (4.56 million USD), which was immediately sent to the Beacon Chain.

However, the price of ETH is currently fluctuating around $2,434, showing no signs of reaction. Naturally, this disconnect between bold Accumulation and price raises larger questions.

Is the sudden surge in the Ethereum network cooling down?

The growth index of the Ethereum network surged past 250,000 new addresses in a short time before falling back to 24,800, according to data from Santiment.

This unusual increase and collapse may indicate speculative activity or a bot-driven surge in the short term rather than sustainable natural growth.

However, sustainable acceptance requires consistency. If such a decline persists, ETH may struggle to maintain momentum at its current level, especially if whales remain optimistic on their own.

Does everyone lose money?

The MVRV Z-score of Ethereum has dropped to -0.18, indicating that many holders are currently at a loss.

This change may reduce profit-taking pressure and trigger a potential accumulation zone, as long-term investors tend to buy when MVRV falls into the negative zone.

This trend often corresponds to the market bottom or at least a short-term recovery. However, traders must wait to monitor other metrics before this signal turns positive.

Source: Santiment## Ethereum's NVT explodes

The NVT ratio of ETH has soared to 2044, the highest in recent months. This spike typically signals an imbalance, when the network's valuation far exceeds its actual utility or transaction flow.

In fact, this often occurs before corrections or prolonged sideways periods. Unless trading volume catches up, even recent whale purchases may hit resistance faster than expected.

Source: Santiment## Why is the divergence of whales widening?

While some whales attract attention, a larger group has withdrawn. According to IntoTheBlock, the net flow of large holders has decreased by 43.92% over the past 7 days. This implies that the outflow of funds is greater than the inflow on a broad scale.

So, what is the big picture? Most organizations have not bought yet.

Source: IntoTheBlockETH is facing a tug-of-war between the bullish activities of whales and weakening on-chain signals. While deep-pocketed buyers continue to increase positions, metrics like NVT, network growth, and net cash flow indicate caution.

The potential for price appreciation in the future may depend on whether this selective accumulation activity will become a broader trend. If not, ETH may struggle to break out until the underlying activity improves.

Minh Anh