- Whales bought 722,152 ETH worth $2.77B in July, with most accumulation done through newly created off-exchange wallets.
- Exchange outflows totaled $1.73B, aligning with ETH’s 39% price surge from $2,800 to $3,900 and reduced circulating supply.
- 91% of ETH holders are in profit; 75% hold long term, suggesting strong investor confidence and reduced selling pressure.
Ethereum’s price climbed close to $3,900 amid intensifying accumulation from whales and a sharp drop in exchange held supply. This comes as financial conditions remain loose, creating a favorable environment for increased capital inflows.
Data confirms a shift in investor behavior, as ETH holders are steadily removing tokens from exchanges, often a sign of long-term holding. From July 6 to July 30, Ethereum surged by nearly 39%, coinciding with a wave of withdrawals and strategic accumulation by large buyers.
Whale Wallets Drive Accumulation in July
According to Lookonchain, three newly created wallets purchased 73,821 ETH, valued at $283 million, within just eight hours. This activity followed a broader pattern, where 11 new wallets accumulated a total of 722,152 ETH since July 9, worth roughly $2.77 billion.
These wallets are not associated with any known institutions or exchanges, suggesting strategic off-exchange accumulation. This accumulation occurred during a period of heavy net outflows from exchanges.
The seven day netflow data shows a $1.73 billion outflow, meaning more ETH was withdrawn than deposited. Such behavior reflects a preference to store assets in private wallets rather than keeping them on trading platforms.
Exchange Outflows Align with Price Growth
From July 6 to July 11, exchange flows showed mixed behavior, with deposits and withdrawals mostly balanced. However, a strong shift occurred starting July 14. From July 17 onward, withdrawals exceeded $100 million on several days, with July 22 and July 30 seeing high spikes.
These outflows closely aligned with Ethereum’s price rally. The asset’s value moved from around $2,800 to above $3,900 in that span. The consistent rise in value, paired with large withdrawals, points to strong holding behavior. As more tokens left exchanges, available supply decreased, creating additional price support.
On-Chain Metrics Show High Investor Confidence
IntoTheBlock data notes that 91% of ETH holders remain in profit at current levels. Only 5% of holders are currently at a loss, while 4% are near their cost basis. Notably, 75% of holders have kept their ETH for over a year, suggesting long term conviction in the asset.
55% of the total supply is held by large holders. Transaction data shows 53% of recent activity originated from Western regions, with the remaining 47% coming from the East. Large transactions over the past week totaled $92.25 billion, indicating strong network usage.
