On August 19, Onchain Lens detected a significant piece of news: a whale withdrew 2,318 ETH, worth 9.94 million dollars, from Wintermute and Kraken after a six-month interval. Currently, they hold 5,191 ETH, worth 22.31 million dollars, with a profit of 4.45 million dollars. In the crypto world, the actions of whales are like a large stone thrown into a lake, inevitably creating ripples. This accumulation of ETH hides many strategies.

Possible intentions behind whales accumulating ETH

Long-term value outlook is optimistic

As the second most mainstream cryptocurrency after Bitcoin, Ethereum plays a crucial role in the blockchain ecosystem. Its smart contract functionality provides infrastructure for various fields, including DeFi and NFTs. With the advancement of Ethereum 2.0, performance is continuously optimized, attracting more developers and users. Whales may be confident in Ethereum's long-term development prospects, believing its value will further increase in the future, which is why they choose to accumulate coins, similar to how investors stockpile gold to achieve long-term asset preservation and appreciation.

Short-term arbitrage layout

Whales, through in-depth analysis of the market, may anticipate a short-term rise in Ethereum. For example, they might have detected some undisclosed positive news or judged that it is a good time to buy based on on-chain data, market sentiment, and other indicators. After extracting ETH, they wait for the price to rise to a certain level before selling for profit, similar to swing trading in the stock market.

Strategic reserve demand

Some whales may represent institutions or consortiums behind them, and their accumulation of ETH may be for strategic positioning. For instance, they might plan to participate in some large project investments or liquidity mining of DeFi protocols on Ethereum in the future, and by stockpiling ETH in advance, they can gain a favorable position for more influence and profit opportunities.

Impact on ETH price increase

Positive impact

  • Enhancing market confidence: Once the news of whales accumulating coins spreads, ordinary investors may believe that there is significant money backing Ethereum in the market, thereby boosting market confidence. Investors who were initially observing might follow the trend to buy, increasing the demand for ETH and pushing the price up. Just like during the bull market from 2020 to 2021, when institutions like Grayscale continuously bought Bitcoin, attracting a large number of retail investors, driving Bitcoin prices to new highs.

  • Changing supply-demand dynamics: When whales extract ETH, it reduces the circulating supply of ETH in the market. If demand remains unchanged or increases, it will tilt the supply-demand relationship in favor of a price increase. If whales continue to accumulate further or other investors follow suit, the price of ETH may see a surge.

Negative impact

  • Triggering panic selling: If the overall market environment is poor, or if whales suddenly sell after accumulating coins, it may trigger panic among investors, leading to a large sell-off of ETH and causing the price to drop. For example, when significant negative news emerges in the market, such as tightening regulatory policies, the whale's selling behavior may cause a stampede effect.

  • Potentially misleading: Whales may also deliberately create the illusion of accumulating coins to attract ordinary investors to buy in, only to sell at a high point. In the crypto world, such behavior of manipulating the market using financial advantages is not uncommon, so one should not blindly follow the trend just because whales are accumulating coins; a comprehensive judgment considering other factors is necessary.


Overall, the phenomenon of whales accumulating ETH has a complex impact on the price trend of Ethereum. Ordinary investors should not blindly follow such news; they need to consider the macroeconomic environment, technical indicators, the trends of other mainstream cryptocurrencies, and various factors to make rational investment decisions. After all, in the crypto world, staying calm and thinking independently is key to avoiding being taken advantage of.

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