Whales Move In, Sellers Move Out: Ethereum Eyes $4,000 Milestone
- Keyword Financial
- Jul 21
- 4 min read
Introduction
Ethereum (ETH) is showing strong bullish momentum as large investors, known as “whales,” are accumulating significant amounts of ETH while the number of sellers and exchange deposits continues to decline. Notably, whales have been opening large long positions and moving substantial amounts of ETH from exchanges into private wallets, signaling confidence in Ethereum’s future price growth. For example, one whale recently shifted over $49 million worth of ETH off the OKX exchange, and another opened a $128 million long position, both moves that typically indicate a long-term holding strategy.
On-chain and spot market data further support this optimistic outlook. Investors have resisted recent sell-offs, instead accumulating over $70 million in ETH and transferring it to private wallets. Additionally, liquidity is flowing into Ethereum from other blockchains, with $4 million in net inflows reported, suggesting that capital is rotating into ETH in anticipation of a rally. These trends point to a growing demand for Ethereum and a reduction in available supply on exchanges.
The amount of ETH held on exchanges has dropped to 19.7 million, and the number of depositing addresses has fallen to just 16,000, a level not seen since early July. This sharp decline in exchange reserves and deposit activity, especially after a 54% rally in ETH over the past month, suggests that a supply squeeze could be imminent. If demand continues to outpace the limited available supply, Ethereum could be poised to break through the $4,000 mark in the near future.
