Ethereum's price has suffered a 57% decline since August 2025, falling to $2,100, while the ETH/BTC ratio has slid 37%. Yet, on-chain data from analytics firm Santiment shows a contrasting trend: investors holding at least 100,000 ETH — a threshold worth nearly $200 million at current rates — have been accumulating since the start of May. These mega whales now control 22% of the total supply, marking a 10-week high in their holdings.
The accumulation coincides with a growing narrative around Ethereum's strengthening fundamentals. Scaling solutions, rising staking participation, and a more efficient supply structure are fueling optimism. Geoff Kendrick of Standard Chartered, cited by analyst Walter Bloomberg on X, argues that the current disconnection between ETH's strong fundamentals and its weak price performance is only temporary. However, the broader cryptocurrency market remains under pressure, with major assets clinging to key support zones amid sustained weakness.
Despite the whale buying, bearish pressure persists. Ethereum has failed to reclaim its 2021 highs against Bitcoin, and market rotation remains a critical factor for any recovery. The coordinated accumulation by deep-pocketed investors suggests a contrarian bet on a reversal, but near-term price action hinges on broader market sentiment and adoption rates.
Counter-argument: The accumulation by mega whales may not signal a bottom; it could reflect strategic positioning by entities seeking to influence governance or stake rewards rather than a bullish price call. Some analysts caution that large holders often accumulate during drawdowns only to distribute later, and the persistent decline in the ETH/BTC ratio suggests capital continues to favor Bitcoin over Ethereum for now.