• Ethereum whales accumulate at 2020 levels, signaling rising long-term confidence.

• Exchange ETH supply drops, hinting at possible bullish supply shock scenario.

• Smart money bets long as Ethereum fundamentals and Layer-2 use strengthen.

Ethereum whales are buying again, and it looks like 2020 all over again. Data from CryptoQuant shows a sharp spike in inflows to Ethereum accumulator addresses. These are wallets that steadily build long-term positions without selling.

These inflows have reached their highest level in over a year. Whales appear to be accumulating ETH aggressively, despite the current market uncertainty. The chart highlights a strong increase in permanent holders.

Source: X

Usually, this is a sign of confidence in Ethereum’s long-term value. From early June 2025, the inflows have accelerated rapidly. This is similar to the volume seen in the buildup to the bull run in 2020.

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According to on-chain activity, most of these inflows are not being moved out. That suggests they are being stored, not traded.

Merlijn the Trader, who posted the chart, believes a supply shock may be coming. His post hints that ETH might soon get scarce. When supply tightens and demand stays strong, prices tend to rise. That’s the logic behind the “supply shock” theory.

These kinds of behaviors by addresses have marked previous major rallies. In 2020, ETH saw similar accumulation before exploding in price. In contrast, retail activity remains muted, but that may change if ETH breaks above $3,000 again.

If that happens, more short-term traders could follow the whales. Should supply stays off exchanges, that could drive the coin’s price further. So far, Ethereum’s supply on exchanges keeps dropping.

That’s usually a bullish sign, as it reduces sell pressure. For now, the smart money seems to be betting long. Ethereum’s fundamentals remain strong, especially with growing Layer-2 use.

The blockchain is still the largest for smart contracts. It is the foundation of DeFi and NFTs, as well as numerous newer applications.

Based on CoinMarketCap data, ETH price is $2,441.30, after a decrease of 2.2% in the past 24 hours. The volume of the trades during the same period is $16.83 billion, even though it dropped by 12.4%. The volume-to-market-cap ratio is 5.71%, indicating active trading.

Source: CoinMarketCap

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