Ethereum Whales Buy $2B ETH Amid 12% Drop

Ethereum’s largest holders accumulated more than $2 billion worth of ETH over the last month, even as the token’s price slumped 12% to roughly $2,012. This divergence between whale accumulation and retail selling suggests a potential relief rally is building, provided key support levels hold.

Whale Accumulation vs. Price Drop

On-chain data from Santiment shows wallets holding at least 100,000 ETH added roughly 1 million tokens between May 1 and May 29, a net gain valued at over $2 billion at current prices [1]. This accumulation occurred while the price fell from over $2,300 to approximately $2,012, a decline that coincided with ETF outflows and a drop in the Fear & Greed index into "extreme fear" territory [1]. These large wallets now control 17.41 million ETH, or 22.03% of the total supply, marking a ten-week high in concentration [1].

Technical Setup and Holder Behavior

Unlike the sell-off in early February when long-term holders distributed coins and the price fell 19%, current data from Glassnode shows holders with positions older than five months are continuing to accumulate [1]. This "hodler" metric has been green since February 24, contrasting with the "deeply red" distribution seen earlier in the year [1]. Technically, Ethereum is forming a "hidden bullish divergence" where the price prints higher lows while the Relative Strength Index (RSI) prints lower lows, a pattern that typically signals seller exhaustion ahead of a relief bounce rather than a full trend reversal [1].

What to watch

• The $1,964 level: A two-day candle close above this price is required to confirm the bullish divergence pattern; a close below it invalidates the setup.
• Holder behavior: Monitor Glassnode’s hodler metric to ensure long-term holders continue to accumulate rather than distribute.
• Whale flows: Watch if whales continue to hold tokens off-exchange or begin moving funds back to trading platforms.

The $2 billion in whale buying does not guarantee a rally, but it provides a stronger foundation for a recovery than price action alone would suggest. The validity of the bullish setup hinges entirely on whether ETH can reclaim the $1,964 level in the coming days.